tag:blogger.com,1999:blog-16143751847396885282017-08-08T05:22:25.954-07:00Political Science Article and Book ReviewsNatashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.comBlogger67125tag:blogger.com,1999:blog-1614375184739688528.post-49112762847020976062012-05-28T19:02:00.002-07:002012-05-28T19:02:45.799-07:00Solove, "I've Got Nothing to Hide" and Other Misunderstandings of PrivacyHere's a great article from SSRN (Social Science Research Network) on privacy -<br />Author - Daniel J. Solove<br />Title - "I've Got Nothing to Hide" and Other Misunderstandings of Privacy<br /><br />Summary:<br /><br />There is often an argument made in privacy issues that no privacy problem exists with the government using all the information they want if a person has nothing to hide. Many people believe that when the government engages in surveillance there is no threat to privacy unless the government uncovers unlawful activity, in which case a person has no legitimate justification to claim that the information remain private. The idea behind this argument is that in the balance between security and privacy, security outweighs privacy all the time.<br /><br />In order to respond to this argument, Solove defines privacy, assesses its value, and weighs it against other values.<br /><br />First, Solove defines the "Nothing to hide" argument more clearly. Solove says that the "Nothing to hide" argument is the response to government intervention that might result in an invasion of privacy. This includes, but is not limited to, actions such as profiling and surveillance. In response to the government performing these actions, citizens say that the government should be allowed to do this because "they have nothing to hide," and so the government's actions won't make a difference to them.<br /><br />Solove says that this response is common, but can be responded to with some wit. All it takes is asking if a person has curtains to make a person realize that although they might not have anything to hide, they have things they don't want to show everyone or tell everyone. For instance, he says that everyone has a threshold that can be reached after which they consider questions of a personal nature to be intrusive. This is a basic concept of personal privacy that people do not want breached.<br /><br />But if the "Nothing to hide" argument is cast in a more general manner it can be harder to refute. Instead of saying all citizens should have nothing to hide, the argument can be made that "all law-abiding citizens should have nothing to hide." Then the argument becomes harder to refute because you don't want to be seen as someone engaging in, or possibly engaging in, illegal activity simply because you don't want people or the government prying into your life.<br /><br />Privacy today seems to involve less the idea of seclusion and more the idea of hiding of information that others might use to harm you or to discredit you or use to your disadvantage. Therefore, if you are insisting on privacy, you are insisting that there is information out there that hints at something "bad" about you.<br /><br />The final version of the "Nothing to hide" argument weighs security against privacy and says that the value of privacy is low because the information is not particularly&nbsp;sensitive for most people but those who desperately want privacy the most have the most to hide and the cost of protecting their privacy is too high. In this form, the very limited disclosure of information to government agencies of information is not likely to be threatening to law-abiding citizens, even if it does invade their privacy, but it will protect all citizens.<br /><br />This still leaves the problem of&nbsp;conceptualizing&nbsp;privacy. There are many different ways of conceptualizing privacy:<br /><br />1) Traditional method: Conceptualizing privacy <i>per genus et differentiam -</i>&nbsp;by looking for necessary and sufficient elements that demarcate what privacy is' locating the core characteristic or the common denominator of the things we link together under privacy.<br /><br />2)Defined by&nbsp;intimacy: privacy covers intimate information access and decisions; however this is too narrow because not all information we consider private is also intimate. As an example, a Social Security number, religious belief and&nbsp;credit&nbsp;card number are not intimate, but are still considered private.<br /><br />3) Right to be let alone: Warren and Brandeis tried to define privacy as the right to be let alone, however this is too broad. If I shove you, I am interfering in your right to be let alone, however it is not a problem of privacy.<br /><br />4) Privacy as familial&nbsp;resemblances: When privacy is conceptualized as familial&nbsp;resemblances&nbsp;is means that there isn't one thing in common that is the same&nbsp;among&nbsp;everything, but rather that everything relates in many&nbsp;different&nbsp;ways - they share a complicated network of similarities. This provides the least restrictive definition without being overly broad.<br /><br />So what is the value of privacy that it can be weighed and measured?<br /><br />Many people view privacy as an individual right - but does it have a social value as well? Emerson says that the right to privacy is based upon a right not &nbsp;to participate in a collective right. The courts have said that the right of privacy is based on the knowledge of the&nbsp;sovereignty&nbsp;of the individual.<br /><br />Part of society's purpose is to protect the individual. Therefore, if privacy is about the individual, then it must have a societal purpose to protect it because society has to protect the individual and privacy is the individual.<br /><br />But privacy involves protecting against a lot of various harms and problems - not just on type of harm or problem - and so the value of protection must be weighed against the value of the harm or the problem in each individual case. Not all privacy problems are equal.<br /><br />However, harm is hard to see in privacy problems because invading privacy rarely results in dead bodies or injuries. It results in emotional or reputational harm which is harder to see, less physical, and harder to quantify. Therefore, it is seen as <i>always</i>&nbsp;less important than the possibility - no matter how &nbsp;remote - of dead bodies at the end of the national security problem.<br /><br />Regardless of how the "Nothing to hide" problems is phrased, the real problem is that privacy hasn't been conceptualized properly as something to protect, as a right, and that harm to privacy hasn't been properly understood. Until that happens the "Nothing to hide" argument will always seem to win because it will always seem to hold the upper hand.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-18757190705572496762010-05-07T17:36:00.000-07:002010-05-07T17:36:00.167-07:00Understanding IPE and Global Finance<p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><u>I. Fundamentals<o:p></o:p></u></b></p> <p class="MsoNormal">i. Monetary: currency; it will establish a system of exchange and how to measure that exchange – puts value on what is traded</p> <p class="MsoNormal">ii. Finance: capital movement and regulation thereof in the international system (currency markets are one part of the financial system, and have been part of the financial system since early 1970s); FDI is another important aspect – long-term (equilibriating according to Keynes, considered productive, 12 months+ and is not speculative) - <span style="mso-spacerun:yes"> </span>and short-term (disequilibriating according to Keynes, capital flowing out of countries to other countries and will disrupt the basic mechanisms of the system, which will affect economic policy. Short term is anything less than 12 months, speculative) Part of the Asian crisis was that the maturity date on trading things was 14 days (so speculative)<span style="mso-tab-count:1"> </span></p> <p class="MsoNormal">iii. B of P (balance of payments): How much finance is flowing out of a country versus into a country. Deficit v. surplus countries – comprised of the current and capital account</p> <p class="MsoNormal">iv. Current Account: merchandise trade, services trade (balance of trade), investment income and payments (interest US is paying on bonds), remittances (money being paid to US, US foreign aid)</p> <p class="MsoNormal">v. Capital account: FDI, short-term and long-term</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Making the Current account and capital account (45-47) convertabilt (they didn’t) so they had to finance a lot of things by using dollars – loans under the Marshall Plan – but then keeping their currency separate from the dollars. </p> <p class="MsoNormal">vi. Adjustment: adjust the interest rate to make money more plentiful or less plentiful (internal); lower the standard of living (internal); raise taxes (internally) -> if this is insufficient, then a country will have to borrow from outside sources, and the problem with that is conditionality.</p> <p class="MsoNormal">vii. Devaluation: State driven, applies to Bretton Woods era – when a country decreases the value of its currency</p> <p class="MsoNormal">viii. Revaluation State driven, applies to Bretton Woods era – when a country increase the value of its currency</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. when a country decreases the value of its currency, it is always in relationship to other currency. The amount of domestic currency that is needed to buy other currency.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. When US pegged their dollar to buy and oz of gold -> that is the base line for devaluation/revaluation in Bretton Woods</p> <p class="MsoNormal">ix. Appreciation; market driven in post-Bretton Woods era</p> <p class="MsoNormal">x. Depreciation; market driven in post Bretton Woods era</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Appreciation and Depreciation is theoretically the market driven for the value of the currency</p> <p class="MsoNormal">xi. Managed Float: When the country buys currency to change the value of a currency. Implies cooperation with other major countries to make a currency be worth a certain amount (within a range)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. collaboration occurs beforehand, </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. if a country wants to depreciate; make it more expensive for Americans to buy foreign currencies, they would have to put more dollars in the market by: 1) selling bonds to put more dollars in the system or 2) do so by selling dollars to put more dollars into the system to depreciate the dollar</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. With the central banks, they have to keep a certain amount on reserve</p> <p class="MsoNormal">xii. Dirty float: A country will engage in manipulation of the value of its currency because it serves the economic national interest. Implies it is not cooperative and is most likely done unilaterally. So it will only be the powerful countries who can do this. </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. What takes place leading up to the Depression – would be considered dirty floats</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. When countries try to protect their domestic currency from changes that take place on the international markets -> taking action to prevent that from affecting domestic actions/politics/prices would be considered <b style="mso-bidi-font-weight: normal">sterilization</b></p> <p class="MsoNormal">xiii. Seignorage: Holder of reserve currency/key currency -> whoever prints that currency acquires economic benefits. With the US, the dollar being dominant since 1940s, acquires benefits from being the printer of the dollar.</p> <p class="MsoNormal">xiv. Exporting inflation: In late 60s- entire 70s, the US exported inflation when it started to run a trade deficit. Basically the US runs a deficit in its balance of payments and it is supposed to adjust. And if it adjust internally, austerity packages are politically internally. So the US wants to adjust doing minimal changes to domestic policies. So it will depreciate/devaluate its currency – making exports cheaper and imports more expensive. Also for people that are holding dollars/central banks that are holding dollars, are holding US debt. So US can influence countries to accept their devaluation/deflation decision to adjust the value of its currency. So the dollars are worth less in other countries now. </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Why does Nixon want to go off the gold standard? To give more flexibility in devaluating currency and letting others pay for it.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. What did Bush administration do? The value of the dollar dropped during his first term/second term and did it intentionally.</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><u>II. Evolution of Monetary System: How the currency will be traded/set</u></b></p> <p class="MsoNormal">i. Gold Standard (1870-1914)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Value of currency is pegged to gold</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. On demand, all countries who embrace the gold standard have to exchange gold-currency and currency-gold</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. Advantages: stable international monetary system, stable value for currencies, enhanced trading and investment prospects</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>d. Disadvantages: Theoretically, limited flexibility and autonomy (purpose of government = stable monetary policy influenced by internal market) </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>e. This is the first era of globalization</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>f. Central banks had to hold reserves in gold</p> <p class="MsoNormal">ii. Gold Exchange (1914-1944)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Main difference from Gold Standard is that central banks can hold reserves in other currencies (and a little silver) as well as holding it in gold.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. otherwise, the principles are the asme as the gold standard</p> <p class="MsoNormal">iii. Bretton Woods (1945-1973)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Dollar is pegged to gold ($35/oz) and all other currencies are pegged to dollar</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. State driven</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. IMF -> exchange rates had to be agreed upon by IMF to make sure that currencies stayed within a certain range</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>d. Keynes wanted to make IMF lender of last resort, but US didn’t want it to be that, but it became that way.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>e. Purpose of IMF -> to address balance of payments problems: 1) deficits (called repurchases) and 2) for currency stability</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>f. To the extent IMF has power and influence, it tends to have the most, because recipients of the loans have to deal with conditionality. When the loans the IMF gives are more than its subscription (pays into IMF), then conditionality starts to apply.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>g. When US goes off gold standard in 71 the IMF decreases in prominence, and it doesn’t return to prominence until 82 with the Mexican Debt Crisis </p> <p class="MsoNormal">iv. Post Bretton Woods (1973 – present)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Movement to floating or market driven exchange rates</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. Point of Helliner book: tendency to explain this transition due to technological/business developments – but Helliner says no -> it’s a political change.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. In financial perspective – removal of capital controls</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><u>III. Politics of Finance</u></b></p> <p class="MsoNormal">i. Capital Controls</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Outlaw capital coming in</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. Put a tax on investment coming into country/deposit before you can invest</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. Say no short-term investing</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>d. removing currency from currency markets</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>e. any type of quantitative restriction/tax on money coming in – is a capital control</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>f. Tobin tax -> an idea that was proposed, tax on currency market (largest investors/investment houses) and then use the money that came in from the tax to help countries with short term balance of payment problems (1977). But in 1979 Volker becomes chairman of the Fed, and no way would he accept that. But idea came back in during Asian crisis and currently in development discussions. NGOs think that could come in almost $300 billion a year, and that money could be used to help with development problems; but then who controls/distributes that money?</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>g. For the most part US doesn’t use capital controls after WWII; but in 1963 the Interest Equalizaiton Tax was introduced which was about 10% tax on foreigners who invested in US, in 1964 this is extended to foreign held bank accounts and foreigners who take loans from US banks (this was considered fairly light capital controls) -> Johnson imposed some strict capital controls (limited amount of capital that MNCs can export) but for a very short time -> MNCs avoided this by using Eurocurrency markets</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>h. Germany limits amount of money coming into country; Mexico limits amount of capital that can flee the country. In debt crisis in Mexcio 1982, more $ leaves the country through capital flight of the elite than Mexico owes internationally.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>i. Reparation of capital flight: If the American banks forced the Mexican elite to take out their money and deposit it in Mexican banks, then mexico would have enough money to pay off its loans. This is the same situation for Africa today – African leaders have more money in foreign accounts than the whole continent owes in loans and they aren’t forced to repatriate this money.</p> <p class="MsoNormal">ii. Bretton Woods Era (44-73)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Keynes and White (<b style="mso-bidi-font-weight:normal">discussion in chapter 2 of the competing systems)<o:p></o:p></b></p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>i. Keynes: equilibriating (countries with a capital surplus would export it to areas with a deficit); short-term speculative flows were seen as doing nothing beneficial but long term investment would be a sign that capital is being exported; Fixed exchange system; central system idea; who should control industry? Products should be made where they are going to be consumed/domestically – to the extent possible all goods should be produced domestically. If you have FDI in that type of situation, there are going to be performance requirements; symmetry would be ensured by a charge on the creditors and that balance would be held with a clearing bank </p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>ii. White: </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. Coalitions (late 20s and 30s)</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>i. what is the changing dynamic of the coalitions during this period? During gold exchange standard the dominant coalition is the banking community, particularly NY banking community – opposed to regulation. But with FDR, the Keynsians replaced the bankers as the dominant coalition (in US – labor, industrialists (more influential than labor) – the shift to manufacturing in international economy, academics/intellectuals). This coalition becomes significant for US tolerating capital controls. </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>ii. What are some of the more important agencies in US that were staffed with Keynsian economists – Treasury (Morgenthau) Commerce department (stacked with industrialists) Fed Reserve (people who like Keynsianism) -> Frieden makes this point in his book; FDR campaigns on liberal economics, but after he gets into office the coalition serves his political interest and there is the shift to Keynsianism</p> <p class="MsoNormal">iii. Post Bretton Woods Era (73-present)</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Euromarkets</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>i. Eurocurrency markets helped lead to demolition of Bretton Woods.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>ii. Origins: Bolshevik revolution and the concern of USSR that US will seize assets; so they put money into off-shore account in London. So by the 1960s businesses could use those accounts to trade without regulation; London allowed this because they wanted to be back on top as an elite power in international politics by allowing unregulated financial markets to be an elite – at least in finance. Also had the money from the OPEC countries with the oil crisis</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. Coalitions: shift to neoliberal coalitions and away from capital controls</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>i. Shift in coalitions that takes place – the Keynsian collation falls apart and the industrialists don’t support the regulation, and go form an alliance with the bankers. The bankers and industrialists pressure Johnson to allow participation in the Euromarket, and move away from capital controls.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>ii. Friedman, taught at Chicago, has a student in George Schultz – who advises Nixon (sec Treas) and Reagan (Sec State) -> and he’s part of the neoliberal coalition. Kissinger is going to be the architect of a lot of Nixon’s policies, but he didn’t really care about economic policy (he was a realist, didn’t care about low-politics of economics). So it gave people like Schultz more influence in economic policy. Persuaded Nixon to go off the gold standard. </p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>iii. US moves to liberalization in 1970s through Reagan.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>iv. Britain has balance of payment problems in 1976, when labor was in power, and had to go to IMF, so they gave up capital controls and liberalized then with their balance of payment countries.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>v. 1981-1983: France moves towards easing capital controls (Mitteron elected president from socialist); finance minister was Jacque Delores, became first president of EU. Delores says that if France wants to remain/attempt to be competitive, France has to lift capital controls.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>vi. mid 1980s -> Germany; Japan (relax capital controls), Italy, Australia, New Zealand (we didn’t really know what it meant, we just did it: competitive pressure), Netherlands </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. Debates</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>i. In favor of a floating exchange rate/market driven exchange rate: What arguments did neoliberals make to go off the gold standard? Its more expensive to have a fixed system, introduces market distortions and inefficiencies – moving to floating exchange rate gives more policy autonomy – from neoliberal perspective: floating exchange rates are not the problem because if there is a problem with exchange rates that means there is a deeper problem in the economy, like the setting of prices. Any type of instability in the financial system is a symptom rather than a cause of the problem (cause = problematic domestic institutions or policy). </p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>ii. For a fixed exchange rate/against a floating exchange rate: less stability, encourages speculation, relegates domestic issues to a subordinate position to a country’s international standing.</p> <p class="MsoNormal"><span style="mso-tab-count:2"> </span>iii. Has this move to the floating exchange rates been advantageous or disadvantageous for US policy? By making the move to floating exchange rates it kept its seignorage position; may have led to some of these financial crises (helped exacerbate the conditions for crises) – in 1940s the Franklin bank failed which was<span style="mso-spacerun:yes"> </span>small bank that made a bunch of international loans; 1982 Mexican Crisis, 1987 stock market crash.<span style="mso-spacerun:yes"> </span>What can we include since peso crisis of 1994? East Asia crisis of 1997. </p> <p class="MsoNormal">iv. Trade and Finance: Helliener says there are 5 important things to remember</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>a. Collective action dynamics – cooperation; in Bretton Woods the dynamics of finance made it easier for cooperation whereas in trade there was more disagreement</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>b. Central bankers are a nascent transnational epistemic community: they have similar beliefs, internalize the same norms and values -> central bankers in BW supported capital controls then lifting capital controls.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>c. The different coalitions involved in both play different parts</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>d<b style="mso-bidi-font-weight:normal">. Low domestic visibility of financial liberalization; trade is much more high profile.<o:p></o:p></b></p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>e. the technical nature of finance people tend to zone out a little bit.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>f. it’s difficult to maintain both liberal trade and liberal finance</p> <p class="MsoNormal">What commission is meeting last week and this week? Greenspan is going to have to testify before a Special Commission to Investigate the Causes of the Most Recent Financial Crisis -> He’s right 70% of the time and wrong 30% of the time and said that he had limited influence (which is questionable) and his comments support the neoliberal logic – there’s nothing wrong with the system, there are problems with the fundamentals that are in the system that are causing the problems with the exchange rate.</p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><b style="mso-bidi-font-weight:normal">Focus on how Helliner uses the change in policy and the support for HST he uses with Japan, US and Britain. Helliner says that changes are the result of political decisions. <o:p></o:p></b></p> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal"><b style="mso-bidi-font-weight:normal"><u>IV. Readings</u></b></p> <p class="MsoNormal">i. Eichengreen: HST and the international monetary system</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>For the most part, HST doesn’t explain the changes in the international monetary system – international cooperation does.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>He breaks it down into the formation/creation, operation, and decline of each system and the role of hegemon in each system.</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>HST can only be applied to issues of liquidity during interwar period; adjustment doesn’t work for any of the periods, lender of last resort HST works only for post-WWII era. </p> <p class="MsoNormal">ii. Cohen: The Unholy Trinity</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>Trinity: fixed exchange rate, capital mobility, policy autonomy -> You can only have two of the three or else you run into HUGE balance of payment problems. It is impossible for states to achieve all three, you have to make exchanges of which ones. What are the options available to a state who might want to maintain this? They could form a monetary union with other states, and achieve all three. Or if countries are willing to submit to an external authority (like Sorros who wanted to create an international facility to monitor capital controls)</p> <p class="MsoNormal">iii. Frieden: Exchange rate politics</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>Important because it provides a framework around which to look at groups that mobilize around exchange rate issues. And the fact that he is addressing the domestic issues at all.</p> <p class="MsoNormal">iv. Goodman and Pauly: Obsolescence of capital controls</p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>Are capital controls obsolete? And if so, why? <span style="mso-spacerun:yes"> </span>For the most part, yes, but not completely. For Goodman and Pauly it would be hard because there is no coalition to support them and it invites evasion or regulation and integrated markets make it too easy to get around. The changes are systemic and so it is going to be difficult to completely reverse that. </p> <p class="MsoNormal"><span style="mso-tab-count:1"> </span>Can you put together a coalition to engage in capital controls? Who would replace the industrialists? </p> <p class="MsoNormal">v. Frieden : Book – Global Capitalism</p> <p class="MsoNormal">Discussion of economic s and politics leading up to the collapse of the Gold Exchange and Gold Standard Systems/Bretton Woods – very good – globalizers victorious chapter too.</p> <p class="MsoNormal">Function of an international monetary system: allows adjustment, liquidity (facilitate transactions and access to capital), to have a lender of last resort. So a state usually, but not always a hegemon, has to be willing to provide the financing for the system. Last function – confidence – the people participating in the system will think it works.</p>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com2tag:blogger.com,1999:blog-1614375184739688528.post-60073609157963539742010-05-04T17:34:00.000-07:002010-05-04T17:36:28.334-07:00Helleiner: States and the Reemergence of Global Finance Summary<p class="MsoListParagraphCxSpFirst" style="margin-left:.75in;mso-add-space:auto; text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">I.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Main Argument/Summary:<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Helleiner argues that the liberalization of financial markets worldwide has been driven largely by government choices, not by technological change or economic pressures. American and British government decisions not to intervene when financial actors were developing the Eurodollar market underwrote the first step. Governments could have reversed the growing capital mobility of the late 1960s and 1970s had they so wished. While unilateral capital controls might not have worked, Cooperative capital controls' might have. Governmental decisions not to pursue these measures - 'non-decisions' - allowed the internationalization of financial markets. Finally, when crises appeared which could have destroyed the new global financial system, governments acted to prevent or minimize them.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Based on hegemonic stability theory<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US was hegemon in financial world and acted to support liberalization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal"><o:p> </o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">II.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Introduction<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>A synthetic political history account of globalization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Answer the question: Why has such an open international financial order emerged in an era when states have retained numerous restrictive trade practices?<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Since trade and finance have taken such different paths, maybe finance is separate from politics – since politics rules trade.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>4 explanations for widespread use of capital controls and the wariness of states to accept a liberal international financial order in the early post-war period (ie restrictive Bretton Woods regime)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The use of capital controls was prompted by prominence of an embedded liberal framework of thought in this period<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Capital controls were necessary to prevent policy autonomy of new interventionist welfare state from being undermined by speculative and disequilibrating international capital flows.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>To make finance the servant rather than the mater in economic and political matters<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Widespread belief that a liberal international financial order would not be compatible with a stable system of exchange rates and liberal international trading order<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Stemmed from experience with destabilizing monetary flows in postwar era and belief that different aspects of liberal international economic order are not necessarily compatible<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Sympathetic attitude adopted by the US towards the use of capital controls in W.Europe and Japan – stemmed from American strategic goals after 1947; US was reluctant to alienate W.European allies during cold war, but also supported financial intervention as part of larger effort to promote growth.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>US wanted to receive European capital, which went from Europe to US after war, because US was the primary lender, and wanted the money.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Six market developments helped global financial markets reemerge<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Restoration of market confidence in the safety of international financial transactions in the late 1950s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rapid increase in the demand for international financial services that accompanied the growth of international trade and MNC activity in 1960s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Private banks responded quickly to the global financial imbalances caused by the 1973 oil price rise, encouraging deposits from oil-producing states and the borrowing of those funds by deficit countries<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The adoption of floating exchange rates in early 1970s encouraged market operators to diversify their assets internationally<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The disintegration of domestically focuses postwar financial cartels in the later 1970s and early 1980s forced financial institutions to enter the international financial arena to supplement their decline domestic profits; and evade domestic regulations.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The market options created in the competitive atmosphere – options, swaps, currency and interest rate futures – reduced the risks and costs of international financial operations.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">f.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>According to 6 reasons above –states have played a minor role in international finance – and have been unable to stop the trend because they cannot control international capital movements b/c money is mobile and fungible<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">g.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>But you must answer how were the actions and decisions of states important to the globalization process and why did the states increasingly embrace an open liberal international financial order after having opposed its creation in the early post-war years.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States made three types of policy decisions in late 1950s that were important to globalization<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Grant more freedom to market operators through liberalization initiatives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>First evidenced in 1960 when US and Europe supported growth of Euromarket<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1974 – US initiated liberalization trend by removing the various capital control it had<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1979 – Britain followed Americans<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Copied by other advanced industrialized nations in 1980s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Refrain from imposing more effective controls on capital movements<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bretton Woods had 2 specific mechanisms<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Capital controls could be made to work through cooperative initiatives at both ends<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Evasion of capital controls could be prevented through the use of comprehensive exchange controls where all transactions were monitored for illegal capital flows<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>These made it into Bretton Woods, but states decided not to use them later<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Ealry 1970s – speculative capital flows threatened Bretton Woods stable exchange system – Everyone except US wanted cooperative controls, but US said no, and asked other countries to agree with it. Without US support, the desire for control faded.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Late 1970s and early 1980s: British and French governments debated, and discarded, the notion of having tight exchange controls. US, during dollar crisis in 78-79 considered and rejected capital controls (showed US commitment to emerging financial order) Fed also tried to get Euromarket countries to intervene in 1980, and was turned down.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Prevent major international financial crises<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>If financial crises were uncontained, they would bring down the liberal financial order and cause people to retreat to domestic arenas.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Three major crises: 1974 (international banking crisis), 1982 (national debt crisis, 1987 (stock market crash) – states acted to contain them through lender of last resort action; extension of emergency assistance to institutions, countries and markets experiencing the problems. <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">h.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Why did states support globalization?<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Attempt to preserve Bretton Woods order met with several political difficulties<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Creation of Euromarket showed ease of subverting Bretton Woods system</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>By deregulating, US and Britain encouraged competitive deregulation from others in order to gain access to deregulated capital and $$</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Bretton Woods mechanisms for capital controls were un-implementable</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Strong interest of US and Britain, after late 1950s, in promoting a more open international financial order<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Us became a hegemon and didn’t want to give up power, even when it was a decreasing hegemon, so they opened markets to become important to global economic order and keep power.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>As Britain and Japan grew in financial importance, they wanted a more open financial order<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Increasing rejection of the embedded liberal framework in favor of neoliberal framework<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neoliberals advocated for liberal international financial order because it would enhance personal freedom and promote a more efficient allocation of capital (int’l and domestic)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neoliberals also rejected Bretton Wood’s two capital controls because: didn’t think that speculative capital would disrupt exchange rate because they believed in a floating exchange rate and didn’t want to preserve autonomy of interventionist welfare state – they wanted freer domestic markets and more orthodox fiscal and monetary policies.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Took place in 1970s-1980s; Helped by Friedman and Hayek – supported by social groups<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The important cooperation of central bank officials from G-10 countries in preventing major international financial crises was aided by the existence of an increasingly sophisticated regime based around Bank for International Settlements (BIS)<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Feared instability and crises in the<span style="mso-spacerun:yes"> </span>new global financial markets – by central bankers<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>To prevent such crises they cooperated closely<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>And used BIS to help reduce international financial instability <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Norms rules and procedures established with central banks through BIS meetings diminished problems of collective action involving global financial stability and wasn’t associated with Bretton Woods<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Why have states acted so differently in trade and finance?<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The unique mobility and fungibility of money ensured that policy makers were not faced with the same collective action problems in creating and maintaining an open financial system as exist with an open trading system<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>An open financial system could be created, unilaterally, by a state who provided its financial market operators an extra degree of freedom – like Britain and US did.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The competitive deregulation process allowed other states to deregulate as well<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Maintain an open financial system doesn’t have collective action problems because you don’t need an organization to police it, like you do with a trade regime.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When there are collective action problems: international lender of last resort actions and international prudential supervision and regulation – the problems can be centered around the BIS which people were already working with.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The hegemonic interests of US, Britain, and Japan have allowed them to assume a lead and they displayed enthusiasm for an open, liberal financial system – they had a hegemonic interest in finance that they didn’t have in trade.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neoliberal advocates had more influence in the international financial sector than the trade sector because of the relatively low domestic political visibility of financial liberalization – because of the seemingly complex and highly technical nature of international finance issues<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>There is a relationship between finance and trade; a liberal financial order isn’t necessarily compatible with a liberal trading order.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bretton Woods organizers thought that speculative capital movement would disrupt trade patterns and encourage protectionism. Recent experience has born out these fears – a little. <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>There are three broad theoretical issues that result from these differences in state behavior<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States may be more likely to embrace an open, liberal order in some sectors of the international economy than others because of inherent sector-specific characteristics.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Such an order was easier for money than for trade because of the unique mobility of money, the fungibility of money, the relatively cooperative attitude of central bankers and the low domestic political visibility of the issues in financial liberalization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The leadership of the Us, Britain, and recently Japan, promoting globalization suggest that hegemonic states do play an important role in the creation of a liberal international financial order.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Three qualifications of traditional hegemonic stability theory:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US hegemonic behavior in finance was driven by less benevolent objectives than predicted by some versions of the theory<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The Japanese and British roles can be understood only by allowing for leads and lags in hegemonic behavior<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The concept of a hegemony must be differentiated by sector because each state’s hegemonic interest in financial openness did not correspond with its interests in trade.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The apparent incompatibility of liberal orders in trade and finance suggests that IPE scholars should be careful when describing the structure of the international economy as a whole during any given period.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">j.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><span style="mso-spacerun:yes"> </span>Three broad arguments in the book:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Globalization cannot be seen as a direct product of the early postwar international economic order. Rather the states were – in the 1940s and 1950s – committed to a restrictive financial order outlined at Bretton Woods because of the strength of an embedded liberal framework of thought, US strategic goals in the cold war, and the need to sacrificie financial liberalism in order to promote free trade and exchange rate stability.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Advanced industrial states have played an important role in the globalization process since the late 1950s by:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Granting freedom to market operators – both through encouraging growth of the Euromarket in the 1960s and through liberalizing capital controls after the mid 1970s<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Choosing not to implement more effective controls on capital movements in the early 1970s and four instances in late 1970s/early 1980s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Preventing three major international crises in 1974, 1982, and 1987.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The support of industrial states can be explained by the political difficulties involved in implementing more effective controls and in preventing unilateral liberalization moves, the hegemonic interests of the US/Britain/Japan in creating and maintaining a stable/open international financial order, the growing influence of the neoliberal advocates in international financial policy making and the existence of an increasingly sophisticated regime centered around the BIS designed to prevent and contain international financial crises.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States embraced more open liberal international finance order at a time when they retained numerous restrictions on trade because:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The mobility and fungibility of money ensured that the collective actions necessary to create and maintain an open trade order were less relevant in finance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The BIS-centered regime drew strength from the fact that central bankers, unlike trade officials, exhibited many of the characteristics of a transnational epistemic community<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The US, Britain, Japan supported the globalization trend in finance particularly strongly because their power and interests in trade and in finance differed<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neoliberal advocates were able to exert strong influence in finance in part because of the low domestic political visibility of the issues<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>State behavior in trade and finance may be related, but not the same.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.25in;mso-add-space: auto;text-indent:0in"><b style="mso-bidi-font-weight:normal"><o:p> </o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">III.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">The Restrictive Bretton Woods Financial Order: </b>1944 Bretton Woods Conference, US built an embedded liberal order in which restrictive economic practices were strongly endorsed.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The break with liberal tradition in international finance after 1931<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Conferences at Brussels in 1920 and Genoa in 1922 – bankers called for a return to balanced budgets, independent central banks, free capital movements, and the international gold standard – led by bankers in London and NY who offered large loans to governments willing to adopt these policy changes.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>After 1929 the confidence in private bankers was deteriorated because of the stock market crash, worldwide depression, reparations and war debt problems, and large payment imbalances<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1930 – created the Bank for International Settlements – a body that was supposed to facilitate central bank cooperation as well as to depoliticize the debt and reparations issue<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1931 brought about an end of international capital markets and a break with liberal tradition in financial affairs; states began using capital controls as a permanent aspect of new interventionist economic strategies (Japan and Germany were first)<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Britain came off gold standard<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1933 – FDR took the US off gold standard; shifted control of monetary policy from Fed to Treasury Dept<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The big thinkers in US (Morgenthau and White) and Britain (Keynes) wanted a more interventionist policy that would remove power from bankers.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Early proposals of Keynes and White<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Both supported capital controls<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>International movements of capital could not be allowed to disrupt the policy autonomy of the new interventionist welfare state; wanted to protect domestic economic planning measures<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>A liberal financial order was not compatible with a stable exchange rate system and a more liberal international trading system – both of which they wanted to establish.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Capital movements cause fluxes in exchange rates<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>If capital could be moved, largely and suddenly, it would set of domestic economic concerns that would call for protectionism.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Only opposed disequilibriating capital flows – equilibriating ones were okay. Equilibriating flows: from countries with a surplus to those with a deficit; also productive capital flows should be allowed. Productive flows: those that satisfy practical needs in international commerce and provide new interest for developing the world’s resources.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Both thought the open financial markets should be sacrificed for open trading system.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>ways they proposed to control capital:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>To prevent capital flows from being disguised as account transfers, each state was allowed to institute exchange controls to scree anll account transactions for illegal capital movements.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Counties should be able to increase the effectiveness of their capital controls by cooperating in the enforcement of each others regulations.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bankers opposed these proposals because they saw them as removing business (capital flight from Europe to US was great for NY bankers) and capital controls would prevent NY bankers from benefiting from an open, liberal international financial market<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Modifications of Early proposals:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bankers succeeded in toning down obligatory cooperative controls<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The wording was changed to say that countries can use exchange rates to impede capital transfers, but not to restrict payments for current debts<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Governments were permitted to cooperate in controlling capital movements<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Only required to provide IMF on request with information on capital movements and holdings, except to the extent that such information would disclose the affairs of individuals or companies<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Bretton Woods and the Endorsement of Capital Controls<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bretton Woods contained the capital flow restrictions from Keynes and White – although the NY bankers made cooperative enforcement optional.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States were given the explicit right to control all capital movements<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States were permitted to use exchange controls to search for and prevent illicit capital movements.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Embedded liberal thought in BW – priority to the defense of the policy autonomy of the new interventionist welfare state from international financial pressures<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">f.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Continuing Caution: The Slow and Limited Move to Convertibility<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The traditional argument is that after WWII the US used its power to create an open liberal international economic order – except for 1945-1947 this isn’t true.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>In fact, US supported restrictive capital movements and didn’t encourage convertibility of currency<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><span style="mso-spacerun:yes"> </span>Capital Flight and the Failure of the Key Currency Plan<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When Truman took office, the bankers found themselves in favor again<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Objective: pressure Britain to restore convertibility between the pound and the dollar – hoping that a stable relationship between these 2 key currencies would revive international trade and reestablish traditional patters of private international finance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>In 1945 the US cut funding to Britain under Lend-Lease Act but promised sizable loan if Britain would make pound convertible w/in 18 months – Britain was facing serious financial crisis and accepted the loan.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>By mid-1947 – a short six weeks after moving to convertibility, Britain had to put on tight exchange controls because there was massive speculation and caused another crisis<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bankers tried to transform Bretton Woods institutions (IMF/World Bank) into conservative to speed convertibility of other currencies.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Failed by mid-1947<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bankers also pushed to keep the BIS and not dissolve it<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1947 – fiscal crisis in Europe; balance of payment problems caused it and massive inflation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Capital fled Europe to US b/c of economic and political instability (estimates guess approx $4.3 billion)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">7.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Europe tried to control capital flight but couldn’t differentiate between a capital transfer and normal account activity – so had to resort to tightening exchange controls<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US could’ve helped by enforcing capital controls in US against foreigners, but bankers didn’t want this and thought Europe could do it itself if it placed deflationary internal policies to attract the capital back.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Marshall Plan Aide as Offsetting Financing<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Marshall plan served to cover the funds that were lost to European countries by capital flight to the US.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Offsetting financing -> where the European countries kept their currencies non-convertible to dollars, but borrowed in dollars to cover expenses; kept current and capital accounts in their currency -> so kept the money separate.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Most direct stipulation of conditionality in Marshall Plan -> the 6 members of the European Coal and Steel Community/EU had to work together to promote their community.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Foreign Aid as leverage? Programs of late 1940s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>April 1947 – First meeting of Mont Pelerin Society – neoliberal thinkers and political figures<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US had chance to force convertibility in its economic aid programs – but didn’t really stress it all that much<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>European Dollar Convertibility in 1950s<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The US laid foundation for the move to European convertibility through its stabilization programs (kind of, but not really)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>More important was<span style="mso-spacerun:yes"> </span>the British move, by financial figures, to multilateralism.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1949 devaluation<span style="mso-spacerun:yes"> </span>of currency in Europe helped balance of payments issue, permitting liberalization to occur in 1950s<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US and IMF favored devaluation – but didn’t force it for fear of alienating people<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Establishment of EPU in 1950<span style="mso-spacerun:yes"> </span>- restored limited convertibility in Europe and helped W.Europe achieve a more open system of trade and exchange payments.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1953<span style="mso-spacerun:yes"> </span>- EPU pushed for dollar convertibility of member currencies<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Although restoration of dollar convertibility was something that was wanted, the fear was still that capital would be at risk of massive capital flight, so American and Europe backed the restrictive Bretton Woods order to prevent the fear of capital flight<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Japanese Convertibility<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>American occupation control established a very restrictive system of exchange controls<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Dodge plan: lets Japanese have a regulated economy and independent from US<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Major US lending program to Japan in 1950s -> Korean War…the US needed a base to set everything up, and used Japan and paid for the privilege<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1954 – US recognized it needed to stress continued economic aid without pressure to liberalize Japan – and so the move to convertibility was finally left to Japanese authorities.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rigid exchange controls were needed to prevent capital flight from undermining artificially low interest rates – which were promoting growth in Japan<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Japanese companies and individuals had to be prevented from evading government’s credit restraints and borrowing abroad.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1964 – Japan began to liberalize external financial relations; resorted convertibility and joined OECD – and accepted the code of liberalization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>OECD Code of Liberalization – forced liberalization of capital movements<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Early post war years are commonly depicted as period in which the US used its overwhelming power to build a liberal international economic order – it didn’t do so in the financial sector<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>viii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>4 reasons:<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>NY bankers wanted more open financial system but they sabotaged their attempts by refusing to support attempts to curtail European capital flight.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Like Bretton Woods – US policy makers considered it necessary to sacrifice financial liberalism to prevent disequilibriating speculative capital movements from threatening the construction of an open trading order and maintenance of stable exchange rates<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1947 crisis confirmed this for policy makers<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Policy makers continued to be influenced by embedded liberal thought<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>New Dealers found strong support for their approach to foreign economic policy among those concerned with US strategic goals in the cold war – sympathetic to embedded liberal ideas because of goal of promoting growth and political stability in Europe and Japan<b style="mso-bidi-font-weight:normal"> <o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ix.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Developments confirmed the restrictive Bretton Woods in early postwar years<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>x.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Several developments foreshadowed its unraveling:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rise of neoliberal movement in Europe (1940s)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Decision to preserve BIS<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1947 crisis revealed the fundamental political difficulties of using Bretton Woods mechanisms to control disequilibriating speculative capital movements<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Reorientation of British financial authorities in favor of multilateralism as an alternative to the protected sterling bloc (late 1940s)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">IV.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">The Reemergence of Global Finance<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Support for the Euromarket in the 1960s<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Eurodollar market was created by private operators and actively encouraged by British financial authorities<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>British restricted how much you could take out of the country for individual citizens (seen as a form of capital control)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Represented goal of restoring London’s international position with the Keynsian welfare state and Britain’s deteriorating economic position<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bank of England – 1962 – allowed the issue of foreign securities denominated in foreign currencies in London, promoting growth of Eurobond market.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Timed to replace NY as main capital trading when US instituted capital controls in 1963<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Basis of American Support for Euromarket<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>External deficit was rising, confidence in dollar was slipping, solution would’ve been to raise long-term interest rates but the domestic policymakers didn’t want to do that…..<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>July 1962: IET (interest equalization tax<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1964 – IET was extended to cover bank loans with a duration of one year or more as well as nonbank credits of one to three years<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1965 – Volentary export control to prohibit capital export by American banks and corporations<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Reasons American support:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Provided a way for dollar to increase attractiveness to foreign holders<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US banks were participating in Euromarket to a high degree b/c they didn’t like the controls placed by federal government on US transactions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US didn’t want to undertake adjustment measures with the deficit, so they turned to Euromarket to finance the deficits<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1960s was transition decade for international finance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>viii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Widespread use of capital controls and offsetting financing networks demonstrated that states continued to fear disequilibriating capital movements<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ix.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Britain and US promoted financial liberalization through unilateral action – which was more effective than anything else<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Failed Cooperation in the Early 1970s<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>W.Europe and Japan tried to move towards a more closed financial order in early 1970s and failed<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The decision of everyone not to initiate cooperative capital controls signaled end of Bretton Woods<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States abandoned principle that liberal financial system should be sacrificed for stable exchange rates<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The floating exchange system stimulated international financial activity<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The 2 mechanisms for capital control in Bretton Woods proved politically impossible to insist on<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neoliberalism emerged as new school of dominant economics<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>US support for new neoliberal policies was because<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Wanted to keep hegemonic power in finance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Wanted to keep autonomy – which meant keeping power<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Economic troubles of era made embedded liberalism of Bretton Woods less attractive<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Leadership and coalitions of neoliberal and financial institutions emerged<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Four Turning Points in the Late 1970s and Early 1980s<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>There were four financial crises<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>If Britain, US, or France had reinstituted capital controls in any of these cases, then liberalization of finance would have been set back – but they didn’t<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Reasons that Bretton Woods was abandoned and no one reinstituted capital controls<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Serious political difficulties in putting capital controls into place<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>People didn’t like the embedded liberal thought anymore, and were shifting to neoliberalism<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Recognition by US policy makers that US would benefit from emerging open international financial order because of their position in the order<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Dollar crisis of 1978-79 undermined US autonomy<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>But hadn’t lost power compared to the position of other states<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Volcker’s stabilization plan (no capital controls, austerity policy, disinflationary tactics) and Reagan’s economic policy show how US was still dominant in international finance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">The Liberalization Trend in the 1980s<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Extensive liberalization initiatives throughout OECD<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>OECD countries extended Code of Liberalization of Capital Movements to cover all international capital movements – May 1989<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>No enforcement capability<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>It produces report of preferred policy to influence governments<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>They come up with the multilateral agreements on investments which was supposed to put neoliberal policies in WTO and it derailed because it was leaked to NGOs<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Three explanations:<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Hegemonic interests of US (existing), Britain (fallen), Japan (rising)(world financial hegemons)<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Open international financial system would help US gain foreign support to finance internal and external debts<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Britain – still committed to London as a center of financial power – lagging hegemon<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Japan – financial liberalization reflected their rising hegemonic status and was a “leader” on its way up and knew financial liberalization would help it on its way up<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Competitive deregulation dynamic<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Policy shifts from embedded liberal to neoliberal trains of thought<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Weathering International Financial Crises<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Central banks really played a role, as did US dominated institutions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>States can really shape financial world – if they wanted to.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">V.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Conclusion<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Explaining Differing state Behavior in Trade and Finance<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">VI.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Criticisms<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b></span><span class="apple-style-span"><span style="font-size:10.0pt;font-family:&quot;Georgia&quot;,&quot;serif&quot;; color:#2B3841">While the political side of the story is well told, the technological and competitive sides are underplayed. The Carter administration rejected capital controls in 1979, not so much because of the growing importance of neoliberal ideas, as the author suggests, but because of the practical infeasibility of using them without a full panoply of exchange controls, which have been politically unacceptable (as well as undesirable for trade) except in wartime.</span><b style="mso-bidi-font-weight:normal"><o:p></o:p></b></span></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b></span><span class="apple-style-span"><span style="font-size:10.0pt;font-family:&quot;Georgia&quot;,&quot;serif&quot;; color:#2B3841">Policymakers also recognized that technology makes the locus of financial transactions geographically footloose: Switzerland, Luxembourg, Singapore, and Bermuda thrive by offering alternatives to the financial regulations of other countries. The demands on international cooperation to carry out a system of capital controls would be formidable; the issue would have to be elevated to a top priority in U.S. foreign policy, and even then might not succeed.</span><b style="mso-bidi-font-weight:normal"><o:p></o:p></b></span></p> <p class="MsoListParagraphCxSpLast" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><span class="apple-style-span"><span style="font-size:10.0pt;font-family:&quot;Georgia&quot;,&quot;serif&quot;;color:#2B3841">The author explains and interprets what he sees as the divergence between international capital movements (virtually free) and foreign trade (still restricted). But this view is myopic. It is true that foreign trade is not free of restrictions, for reasons that are well explained. But the book ignores the tremendous liberalization of trade that has occurred over the past 40 years, and is likely to continue with the European single market, NAFTA, and the Uruguay Round. In truth, there has been much more parallelism than divergence.</span></span><b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-49235215387610823602010-04-23T09:21:00.000-07:002010-04-23T09:21:00.416-07:00Outline of Presidential ScholarshipThis is an outline of various articles and ways of thinking about the presidency (US) and the various skills and tasks a president has to undertake while being president. It includes the rhetorical presidency, institutionalized presidency, the theory of 2 constitutions, and how to manage the bureaucracy.<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:.75in;mso-add-space:auto; text-indent:-.5in;mso-list:l0 level1 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">I.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">Public Expectations of the President</b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Public Expectations of the President (Simon)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Image based expectations</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The desirable personal traits of presidents and how they should conduct themselves in office</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Stems from ceremonial nature of the presidency and the ideal authority figure projected in textbooks (textbook presidency)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Consequences:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Expectations of how presidents should behave is high and exaggerated</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Potentially contradictory expectations – must be all things to all people</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Performance based expectations</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>What the president should accomplish; represents the public belief that the president is equipped to influence conditions and events in the real world.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Stems from change in the institution of the presidency </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Tulis -> Rise of the rhetorical presidency with Wilson<span style="mso-spacerun:yes"> </span>caused this</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Gamm and Smith -> Going public began with T.Roosevelt</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">LOWI</b> (this is the one he believes) -> FDR; because he marginalized the political party and established a direct and unmediated relationship with the people</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Consequences of performance based expectations</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Helps to understand fluctuations in public support: public holds president accountable for a lot of things, even if he has no direct control over them.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents are the blame for bad outcomes</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The political value of public support has altered presidential politics</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">Kernell: </b>The growth of the welfare state, demise of parties as mediators between president and public, and technological advances in communication and travel have created this new type of presidential power based on public opinion.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents usually fail at enacting major policy changes (Light calls the “no-win” presidency) and causes problems with performance based expectations.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">II.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Leading the public<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">The 2 Constitutional Presidencies (Tulis)</b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Formal Presidency – Article II of Constitution</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Informal Presidency (start w/Wilson)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The Founding perspective on the presidency</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Danger of a powerful executive who had power derived from role of popular leader (demagogue)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Demagogue may be good if means to a good end, so how to structure institutions to force this to be the only possible demagogue?</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Good policy over bad policy</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Representation</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Fear of majority tyranny or unwise majority</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Established popular elections for some posts and some indirect elections (to prevent a poorly qualified/regime instability)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Different term lengths</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Authority/formal powers from Constitution to insulate them from say-to-day swings in public opinion</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Madison/Hamilton/Federalist papers – Presidency was intended to be representative of the people and not responsive to popular will</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Independence of executive </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Created ability for president to hold diff opinions from congress</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Separation of powers</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Nuestadt: Founders created separate institutions sharing power; preserving liberty by preventing arbitrary rule of any one center of power.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Modern Perspective (Wilson)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Rhetorical presidency</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Separation of powers has failed to promote deliberation in Congress and energy in executive – no cooperation</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson wanted institutionally structured cooperation not negative checks (over-rides and vetoes)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Representation</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson gave great weight to role of public opinion and have ideas formulated by the masses</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Founders – deliberation = reasoning on merits of policy</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson – deliberation = major contests of principle and public not engaged; hidden in subcommittees -> and this is not public deliberation or representation.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Independence of executive</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Founders – presidential authority comes from constitution</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson – presidents have a national mandate, their power comes from that (<b style="mso-bidi-font-weight:normal"><i style="mso-bidi-font-style:normal">this is the 2<sup>nd</sup> constitution</i></b>)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Interpretation of national mandate:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:4.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level8 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Understand the true majority sentiment under conflicting positions</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:4.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level8 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Must explain the people’s true desire to them clearly and convincingly</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>How to distinguish demagogue from rhetorical president/leader?</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Character of leader</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Demagogue: augment personal power</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Leader: interests of community</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Nature of appeal</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Demagogue: momentary/transitory passions of people</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Leader</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Founders believed presidents drew energy from their authority, which came from independent constitution</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson believed power and authority are conferred by the people:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">2<sup>nd</sup> constitution</b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal"><i style="mso-bidi-font-style:normal">presidents have to craft rhetoric to appeal to public</i></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal"><i style="mso-bidi-font-style:normal">presidents have to use public opinion to get their rhetoric turned into action by Congress</i></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>This viewpoint came to power because presidents lacked resources to get energy for action from formal authority.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example of all this: Reagan -></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Won tax reform by skillful rhetoric and legislative strategy to overcome lobbied by gaining backing of public which produced deliberation in Congress.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Budget cuts of 1981 were done by gaining backing of public and eliminated deliberation within Congress.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Bush tried to do this re: Iraq</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example of a mistake where presidents tried to cover mistakes with rhetoric (aka Monica and Clinton scandal)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Tried to simplify a complex argument to something the people could understand to make it rhetorically effective</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:4.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level8 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Because this is what the 2<sup>nd</sup> constitution requires</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Which resulting in credibility issues</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><o:p> </o:p></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Leading the public (Edwards)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Gaining and maintaining office, obtaining support for legislation and increasing party’s representation in Congress depend on public opinion</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><b style="mso-bidi-font-weight:normal">Kernell: </b>White House spends lots of time/resources focusing the public on the issues it wants to deal with and having the public see the solutions to the issues in a good light.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents are unlikely to change public opinion but they can exploit it (key from White House stance is controlling the agenda)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Framing the issues: a central organizing ideal for making sense of an issue or conflict and suggests what the controversy is about and what is at stake.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Changing what the public thinks most about </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Clarify public opinion -> it’s amorphous and presidents can clarify it</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Understanding the Rhetorical Presidency (Birnes)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Edwards – going public rarely moves a national audience</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Historical patterns of presidential rhetoric (Tulis)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The presidency underwent a transition with Wilson – his doctrine of popular leadership represented a major shift from the founding perspective</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Founders sought to prohibit presidential popular leadership</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example: Jackson’s impeachment after trying to rally the public to his position towards former confederates in 1866 is an example of what happened when presidents tried to go public.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>After Wilson, presidents shifted from constitutional rhetoric to inspirational rhetoric</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson expanded the doctrine of popular leadership by including an <b style="mso-bidi-font-weight:normal">informal second constitution</b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Because of the informal second constitution, the rhetorical presidency arose</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Starting with Wilson, presidents began to change their tone to be for public consumption</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Rhetorical presidency isn’t a good thing:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Layers second constitution on top of first</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents have to navigate through the two, often conflicting, constitutions</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidential addresses have degraded in quality</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Critiques of the rhetorical presidency</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Challenge claim that constitution prohibited popular leadership</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Framers didn’t prohibit popular leadership</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Electoral College wasn’t intended to be a restraint on popular leadership</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Constitution doesn’t prohibit popular leadership.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Early rhetorical practice</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents attempted to use tours and popular appeals before Wilson</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson’s doctrine of popular leadership</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Wilson didn’t really argue for popular leadership, he was ambiguous about it.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Tulis misdefines rhetoric in “rhetorical presidency”</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The definition of rhetoric is too narrow, so it is midefined and no true.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Does Presidential rhetoric matter?</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>President’s reliance on public rhetoric persuades public sometimes, but at the cost of short-circuiting bargaining and deliberation (Tulis/Kernell)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Although going public might not influence the public, you can influence agenda setting and spending priorities.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Going public can draw attention to certain issues/change public perception about certain issues</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The symbolic presidency and impact of rhetoric</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Stuckey and Antczak: Presidential rhetoric can make certain identities and self-conceptions of citizens more prominent and can shape how citizens understand the issues facing the country and the role of the presidency in the political system.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Zarefsky: Presidential rhetoric is important because it attempts to define political reality for the public</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Kernell: If everyone goes public, the public will tune out and not respond.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">f.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The Paradox of White House Communications (Jacobs)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Problem: High public expectations of president and limited ability to meet those expectations because of Congress and entrenched interests</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Standard approach: Going public – Appeal directly to American people in hopes people will pressure Congress</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Clinton’s first term: Aides traced problems to: Hostile media coverage and team’s failure to bring journalists into a crafted media flow</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example: Health Care reform: Opposition successfully painted it as more taxes and more government control and recruited reporters better than White House</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>So the media was able to reduce Clinton’s policy initiatives to “getting reelected” or simply ignored them. </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>How to overcome problems Clinton had?</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Launch a communications war to control message through speeches/activities that would dominate press reporting – they see the press as helping them to mobilize their political power (a full time rhetoric manufacturing plant is needed at WH to help manage this)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Interaction of media and politicians has 3 patterns:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Escalation in presidential communications concerning favorable initiatives to increase number of reports on them</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>President’s decision to say more results in rise of interviews with independents, experts and critics</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>When conflict over a particular issue is low, conflicting viewpoints in news and media coverage remain low</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example: Clinton on Social Security: he didn’t focus on one pragmatic solution, but focused on making sure everyone was involved and press reports were more substantive and less focused on opposition views because they showed a shared search for common ground between Reps and Dems</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>When presidents declare a communications war to promote a contentious policy, the press stops substantive reporting and moves to motivations, intentions, and strategic behavior of WH – which is what the WH wants to avoid.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Example: Clinton’s attempt to pound home message on health care provoked strong political counteraction that resulted in rise of unfriendly press coverage and reports on political strategy</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>This is a special type of belligerence by President</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Trying to dominate press coverage and promote policies in good light leads to:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Political opposition</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Press coverage of opposition and strategy – not substance **This is what presidents want to avoid</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The confidence of presidents and their advisors in their ability to dominate press coverage produces 2 surprises </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Fixation on potential benefits of media warfare blinds them to downsides (political damage)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Results in wasted opportunities and political deadlock</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>So they should learn to use a less confrontational approach to gain more benefits</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Not abandoning speaking and going public, but instituting cooperative leadership to:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Share spotlight with others so not focuses on negative attention</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Use platform to accommodate competing points of view and highlight a compromise (downplay conflict)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><i style="mso-bidi-font-style:normal">This will result in increased press coverage and coverage of substantive issues</i></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:0in"><o:p> </o:p></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">III.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">The Legislative Presidency<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Legislative Skills (Wayne)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Legislative skills are the tactics a president uses to convince members of Congress to support their policy initiatives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Legislative skills are needed b/c expectations (performance expectations) for presidents combined with systematic constraints (constitutional and institutional) and political constraints impede president’s ability to achieve expectations.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Neustadt: The essence of a president’s persuasive task is to get them to believe what he wants them to believe by getting them to think it is in their own interests to do so.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Structural Instruments of Presidential influence:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Agenda settings: campaigns and state of the union addresses are 2 big things showing how President’s set the agenda.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Prioritizing items in the agenda: Making Congress know how strongly a president feels about an item can make it harder/easier to get it through – urgent/less urgent<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Packaging items: In a manner that contributes to their enactment in the form and with the content desired – this involves getting the public involved/setting frames<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Timing: Time introduction so as not to overload Congress, basing timing on need of influence (it takes time to build up influence to get agenda going)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Position taking: To influence Congress the president must have clear positions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Threatening Vetoes: designed as leverage in negotiations, but they must be credible<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Interpersonal tactics: <b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Interact with Congressional leaders<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Failure to reach out to Congress lessens the likelihood that the policies will become law in the form and content desires<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Contact and consultation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bargaining and compromising<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rewards and sanctions<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Veto Bargaining (Cameron)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The veto enables presidents to influence legislative outcomes<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Divided government does not make governing impossible, it simply encourages more bargaining<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Analyzes all 434 vetoes from Truman to Bush, emphasis on how veto rates are affected by unified or divided government as well as the relative importance of a piece of legislation.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are rare under unified government<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When a government is divided and legislation is important:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are not rare<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are often part of veto chains – sequential bargaining process between Congress and President<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Presidents routinely use vetoes to extract policy concessions from congress (80% of his cases, Congress made some sort of concession)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Builds on Neustadt’s idea that presidential reputation is critical to bargaining power.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Agrees with Mayhew’s claim that divided government does not decrease legislative productivity but argues that divided government does influence the nature of those laws passed – more veto bargaining happens<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Preference driven approach<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Three models of Veto Bargaining<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Romer-Rosenthal model (take it or leave it bargaining) – President and Congress have complete information; Cameron wants to replace this because It is too simple. But despite the simplicity – it suggests that the power to veto can shape the content of legislation even if vetoes are never used.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Override model: Three players (floor median, the president, the override pivot); used when the floor median is closer to the override pivot than to the president. The floor will design a bill that it knows will be vetoed, but hopes to override the veto. The focus is not on the president, but the override pivot.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Assumes that the ideal point of any potential override player is much closer to that of the congressional majority than the president’s ideal point.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congress will not make concessions with the president because the goal is to override the president</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>There is the probability of a breakdown after the veto – that the bill simply dies and never gets reformulated and passed: Cameron says this possibility reflects the importance of the bill</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Sequential Veto Bargaining: Used when the president’s ideal point is closer to the floor median than the override pivot. Congress will try to pass something acceptable to the president. In this, Congress amends the bill at each round (in Model 2, failure to override is poor luck, here failure to override is necessary). Each veto reveals information about the president’s true ideal point so Congress modifies its proposals accordingly.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Cameron says the uncertainty of the president’s ideal point is related to the president’s reputation</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Played when the president’s ideal point is closer than the override’s pivot point.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>viii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Application of the Models: Congress is more productive under unified government than under divided government; during divided government a few items are taken off the legislative table that would have found a place under unified government, then those are often resolved with lengthy haggling.<b style="mso-bidi-font-weight:normal"> <o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:.75in;mso-add-space: auto;text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">IV.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Bureaucracy and Management<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Lewis (2006)</b> Presidents and the Bureaucracy: Management Imperatives in a Sep. of Powers System<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>President must manage federal bureaucracy because it is a source of political power<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bureaucracy is important because it makes decisions about national security, economy, the environment and citizens; and Congress is delegating more and more power to it.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vesting clause: The executive power shall be vested in the president (but no clues about what the “executive power” really is)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal"><span style="mso-spacerun:yes"> </span></b>Modern view: President is obligated to direct the national bureaucracy in order to faithfully execute the laws; the president needs to control the administrative apparatus of the government.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>President attempts to gain control over bureaucracy by:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Appointment<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Removal<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Unilateral executive action<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Budgetary review<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Influence budget because presidents draft it<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Executive reorganization<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Example: Bush and DHS<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Bush wanted managerial flexibility at DHS<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>All presidents want more authority<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Presidents want more control over bureaucracy because they want people who will obey them.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Why did Congress not stop Bush?<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>It’s hard for Congress to restrain the President on national security issues<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Although all members of Congress have interest in restricting Presidential authority, the president’s own party has less interest<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Electoral issues made it clear to Congress that they needed to support president in national security matters<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Presidents who are going to be held accountable for what the bureaucracy does want control over the agencies.<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Historical changes in bureaucracy:<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>1829: Jackson said that the federal jobs were limited in scope and prerequisite requirements.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Patronage practices: gave congress control over bureaucratic personal because presidents were beholden to parties to get elected.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>This was weakened when Congress divided into policy-based committees<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Great Depression and WWII; Congress delegated more power over bureaucracy to President<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Civil service was professionalized and institutionalized.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rose: A Chief But Not an Executive<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The president is a chief – a leader with unique personal attributes<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Staff must look after his personal and political priorities and policy character to keep negative priorities out of spotlight and keep president out of trouble<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Establish a buffer institution to stand between himself and problem<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Avoid establishing institutions that will deliver controversy to Oval office.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>There are 2 major choices a president can make, organizationally<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Size of his staff<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Dictated by the function the president serves<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The larger the staff the greater aggregate resources the president has to influence the executive branch<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The larger the staff the less person interaction a president has with each member<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Clarity with which responsibility is fixed for tasks<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The more adept a president is at giving instructions to the intuitions, the greater his political impact<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The greater the clarity he assigns tasks, the greater the economy of time and effort.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The greater the clarity with which he assigns tasks, the fewer sources of information the president has about an issue<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Time is purchased at the cost of knowledge<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Overlapping tasks offer multiple views on issues<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Too many advisors means being pulled in too many directions.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>These result in 4 types of organizations<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Absolute Monarchy<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Large staff, clean hierarchy of tasks and responsibilities – not feasible with this size of government<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Saturation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Large staff, overlapping tasks (Johnson/Nixon)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Thought behind this: If you throw enough staff at a problem, with enough different attempts, something will stick<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Assumes that more = better <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Extra political costs because you have to control in-fighting and internal politics.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rule of Law Feudalism *Seen as an appropriate choice depending on extent president wants to consolidate or extend influence.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Clearly defined tasks and small staff 9Eisenhower)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>A contract between top man and staff details relationship – enforced by common acknowledgment of the rule of law.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Feudal model – the president’s power is limited<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>By making fewer claims, the country will be better governed.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Even though the president isn’t getting involved, he is still subject to having his alternatives foreclosed by concentrating the channels of power into fewer people<b style="mso-bidi-font-weight: normal"> <o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Free Enterprise *Seen as an appropriate choice depending on extent president wants to consolidate or extend influence.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Overlapping tasks, small staff<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>FDR: master of this type of governance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>JKF tried to do this too<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Protects the president from being constrained by the flow of information by having overlapping areas<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Based on assumption that the constitution does not make the president the sole source of authority within the executive branch – not the sole object of blame.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>President must use his staff to establish his priorities:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Establish reputation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Presentation of self<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When large #s support the president he can get Congress to more easily follow him<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>How effective he is on the hill<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Housekeeping – hoe the President lives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Political priorities: the course of action the president feels the government should take<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>These two are positive priorities, and he needs relatively few resources to meet these<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Examples: During Eisenhower’s heart attacks and Watergate, the executive branch continued to function without direction from the president, so executive agencies really aren’t his concern. <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Negative priorities <b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Keeping out of trouble<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Program implementation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Program evaluation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inter-agency coordination (brings problems to president)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inter-governmental coordination (federalism concerns)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Can solve these by having a buffer agency to keep the President out of things<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>He can also engage in <b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style:normal">abstention</i><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Not taking a policy on initiatives he’s not committed too<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Delaying<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Stating views in a vague, non-directive forms<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level2 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Moe: The Politicized Presidency<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Modern presidents politicize administrative arrangements and centralize policy related concerns in WH<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Politicization: commonly disliked for its effects on institutional memory, expertise, professionalism, objectivity, and institutional competence<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Centralization: disliked because it circumnavigates institutions and places and relies on WH<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>How institutions develop<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Environment shapes path of institutional development because it dictates structures, incentives and resources<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Institutions will only change when there are the right incentives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>What development means to institutional presidency<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Huge gaps between performance expectations and capacity of president to meet expectations<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Modern presidents are driven by all the expectations to seek control/order over the bureaucracy because he has limited constitutional powers and needs the help of the institutions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>2 main directions of change to encourage responsive competence from institutions so president can keep going<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Increasing centralization of the institution presidency in the WH because then he can count on support from his own people<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Increase politicization of the institutional system<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Attractive because its anchored in formal presidential power – appointment power – and can use it to reach all areas – not just the WH<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Congress tends to oppose attempts to do this<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Illustration<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Institutional presidency began with Budget Act of 1921 -> created Bureau of Budget who submitted budgets to Congress, was intended to help rationalize chaotic budget process of Congress.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>FDR couldn’t deal with the BB<span style="mso-spacerun:yes"> </span>sp he became WHY centric when the institutions couldn’t help him reach his goals<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>In his second term he brought the BB under the executive office – OMB<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Truman and Eisenhower – had to work with the institutions they were given and then had to grow and enlarge the WH competence by formalizing and elaborating on the practices of the past<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Reagan made a drive to congruence<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Congruence = bringing the centralization of institutions and politicization of institutions together in an institutional presidency<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Standard Criticisms re politicization and centralization de-bunked<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Centralization and politicization are denounced because:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Claim they undermine and circumvent the competence of established institutions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inhibit development of new sources of institutional support<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Shift decision making responsibilities to those least capable of handling them<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>So instead recommendations are administrative in nature that are aimed at respecting/nurturing neutral competence and organizational integrity (normative)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>viii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Conclusion: Moe view the presidency as an institution whose development is driven by incongruence among structures, incentives and resources.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ix.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Basis for incongruence in American politics is the expectations of the president far exceed his ability to perform<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>x.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>So president has strong incentive to maximize his capacity to do things by initiating reforms and making adjustments in the administrative apparatus around them<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>xi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>But because of inflexibility, lack of resources, constraints of political and bureaucratic opposition, institutions inertia and time pressures: presidents go for areas of greatest flexibility and change – politicization and centralization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpLast" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>xii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Politicization and centralization have grown over time because of the nature of the institutions and the role/location of the presidents within them (systematic causes)<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-33581921143010878862010-04-21T09:19:00.000-07:002010-04-21T09:19:00.631-07:00Cameron: Veto BargainingThis article, by Cameron, explains how the president can use his veto power to bargain with Congress, and what Congress' responses can be to the president's use of his veto power.<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The veto enables presidents to influence legislative outcomes<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Divided government does not make governing impossible, it simply encourages more bargaining<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Analyzes all 434 vetoes from Truman to Bush, emphasis on how veto rates are affected by unified or divided government as well as the relative importance of a piece of legislation.<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are rare under unified government<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When a government is divided and legislation is important:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are not rare<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Vetoes are often part of veto chains – sequential bargaining process between Congress and President<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Presidents routinely use vetoes to extract policy concessions from congress (80% of his cases, Congress made some sort of concession)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Builds on Neustadt’s idea that presidential reputation is critical to bargaining power.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Agrees with Mayhew’s claim that divided government does not decrease legislative productivity but argues that divided government does influence the nature of those laws passed – more veto bargaining happens<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Preference driven approach<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Three models of Veto Bargaining<o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Romer-Rosenthal model (take it or leave it bargaining) – President and Congress have complete information; Cameron wants to replace this because It is too simple. But despite the simplicity – it suggests that the power to veto can shape the content of legislation even if vetoes are never used.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Override model: Three players (floor median, the president, the override pivot); used when the floor median is closer to the override pivot than to the president. The floor will design a bill that it knows will be vetoed, but hopes to override the veto. The focus is not on the president, but the override pivot.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Assumes that the ideal point of any potential override player is much closer to that of the congressional majority than the president’s ideal point.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congress will not make concessions with the president because the goal is to override the president</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>There is the probability of a breakdown after the veto – that the bill simply dies and never gets reformulated and passed: Cameron says this possibility reflects the importance of the bill</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Sequential Veto Bargaining: Used when the president’s ideal point is closer to the floor median than the override pivot. Congress will try to pass something acceptable to the president. In this, Congress amends the bill at each round (in Model 2, failure to override is poor luck, here failure to override is necessary). Each veto reveals information about the president’s true ideal point so Congress modifies its proposals accordingly.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Cameron says the uncertainty of the president’s ideal point is related to the president’s reputation</p> <p class="MsoListParagraphCxSpLast" style="margin-left:3.0in;mso-add-space:auto; text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Played when the president’s ideal point is closer than the override’s pivot point.</p> <span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: Calibri;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">Application of the Models: Congress is more productive under unified government than under divided government; during divided government a few items are taken off the legislative table that would have found a place under unified government, then those are often resolved with lengthy haggling.<b style="mso-bidi-font-weight:normal"> </b></span></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-35461564373694019732010-04-19T09:17:00.000-07:002010-04-19T09:17:00.318-07:00Rose: A Chief not an ExecutiveThis article is from the 1970s and discusses how a president should lead the bureaucracy and why he makes the choices he does. Rose, the author, states that the president is a chief not an executive; which is how the article got its name.<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The president is a chief – a leader with unique personal attributes<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Staff must look after his personal and political priorities and policy character to keep negative priorities out of spotlight and keep president out of trouble<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Establish a buffer institution to stand between himself and problem<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Avoid establishing institutions that will deliver controversy to Oval office.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>There are 2 major choices a president can make, organizationally<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Size of his staff<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Dictated by the function the president serves<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The larger the staff the greater aggregate resources the president has to influence the executive branch<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The larger the staff the less person interaction a president has with each member<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Clarity with which responsibility is fixed for tasks<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The more adept a president is at giving instructions to the intuitions, the greater his political impact<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The greater the clarity he assigns tasks, the greater the economy of time and effort.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>The greater the clarity with which he assigns tasks, the fewer sources of information the president has about an issue<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Time is purchased at the cost of knowledge<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Overlapping tasks offer multiple views on issues<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Too many advisors means being pulled in too many directions.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>These result in 4 types of organizations<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Absolute Monarchy<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Large staff, clean hierarchy of tasks and responsibilities – not feasible with this size of government<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Saturation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Large staff, overlapping tasks (Johnson/Nixon)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Thought behind this: If you throw enough staff at a problem, with enough different attempts, something will stick<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Assumes that more = better <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Extra political costs because you have to control in-fighting and internal politics.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Rule of Law Feudalism *Seen as an appropriate choice depending on extent president wants to consolidate or extend influence.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Clearly defined tasks and small staff 9Eisenhower)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>A contract between top man and staff details relationship – enforced by common acknowledgment of the rule of law.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Feudal model – the president’s power is limited<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>By making fewer claims, the country will be better governed.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Even though the president isn’t getting involved, he is still subject to having his alternatives foreclosed by concentrating the channels of power into fewer people<b style="mso-bidi-font-weight: normal"> <o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Free Enterprise *Seen as an appropriate choice depending on extent president wants to consolidate or extend influence.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Overlapping tasks, small staff<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>FDR: master of this type of governance<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>JKF tried to do this too<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Protects the president from being constrained by the flow of information by having overlapping areas<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Based on assumption that the constitution does not make the president the sole source of authority within the executive branch – not the sole object of blame.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>President must use his staff to establish his priorities:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Establish reputation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Presentation of self<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>When large #s support the president he can get Congress to more easily follow him<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>How effective he is on the hill<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Housekeeping – hoe the President lives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Political priorities: the course of action the president feels the government should take<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>These two are positive priorities, and he needs relatively few resources to meet these<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Examples: During Eisenhower’s heart attacks and Watergate, the executive branch continued to function without direction from the president, so executive agencies really aren’t his concern. <b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Negative priorities <b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Keeping out of trouble<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Program implementation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Program evaluation<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inter-agency coordination (brings problems to president)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inter-governmental coordination (federalism concerns)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Can solve these by having a buffer agency to keep the President out of things<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>He can also engage in <b style="mso-bidi-font-weight: normal"><i style="mso-bidi-font-style:normal">abstention</i><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Not taking a policy on initiatives he’s not committed too<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpLast" style="margin-left:3.5in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level7 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Delaying<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-fareast-font-family: Calibri;mso-bidi-font-family:&quot;Times New Roman&quot;;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">Stating views in a vague, non-directive forms</span></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-89444045209935400572010-04-18T09:16:00.000-07:002010-04-18T09:16:00.455-07:00Moe: The Politicized PresidencyHere is a summary of Moe's "The Politicized Presidency"<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Modern presidents politicize administrative arrangements and centralize policy related concerns in WH<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Politicization: commonly disliked for its effects on institutional memory, expertise, professionalism, objectivity, and institutional competence<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Centralization: disliked because it circumnavigates institutions and places and relies on WH<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>How institutions develop<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Environment shapes path of institutional development because it dictates structures, incentives and resources<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Institutions will only change when there are the right incentives<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>What development means to institutional presidency<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Huge gaps between performance expectations and capacity of president to meet expectations<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Modern presidents are driven by all the expectations to seek control/order over the bureaucracy because he has limited constitutional powers and needs the help of the institutions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>2 main directions of change to encourage responsive competence from institutions so president can keep going<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Increasing centralization of the institution presidency in the WH because then he can count on support from his own people<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Increase politicization of the institutional system<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Attractive because its anchored in formal presidential power – appointment power – and can use it to reach all areas – not just the WH<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Congress tends to oppose attempts to do this<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Illustration<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Institutional presidency began with Budget Act of 1921 -> created Bureau of Budget who submitted budgets to Congress, was intended to help rationalize chaotic budget process of Congress.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>FDR couldn’t deal with the BB<span style="mso-spacerun:yes"> </span>sp he became WHY centric when the institutions couldn’t help him reach his goals<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>In his second term he brought the BB under the executive office – OMB<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Truman and Eisenhower – had to work with the institutions they were given and then had to grow and enlarge the WH competence by formalizing and elaborating on the practices of the past<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Reagan made a drive to congruence<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Congruence = bringing the centralization of institutions and politicization of institutions together in an institutional presidency<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Standard Criticisms re politicization and centralization de-bunked<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Centralization and politicization are denounced because:<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Claim they undermine and circumvent the competence of established institutions<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Inhibit development of new sources of institutional support<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Shift decision making responsibilities to those least capable of handling them<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>So instead recommendations are administrative in nature that are aimed at respecting/nurturing neutral competence and organizational integrity (normative)<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>viii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Conclusion: Moe view the presidency as an institution whose development is driven by incongruence among structures, incentives and resources.<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ix.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Basis for incongruence in American politics is the expectations of the president far exceed his ability to perform<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>x.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>So president has strong incentive to maximize his capacity to do things by initiating reforms and making adjustments in the administrative apparatus around them<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>xi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>But because of inflexibility, lack of resources, constraints of political and bureaucratic opposition, institutions inertia and time pressures: presidents go for areas of greatest flexibility and change – politicization and centralization<b style="mso-bidi-font-weight:normal"><o:p></o:p></b></p> <p class="MsoListParagraphCxSpLast" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>xii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b>Politicization and centralization have grown over time because of the nature of the institutions and the role/location of the presidents within them (systematic causes)<b style="mso-bidi-font-weight: normal"><o:p></o:p></b></p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-67751146763838938472010-04-15T09:13:00.000-07:002010-04-15T09:13:00.730-07:00Skowronek: The Politics Presidents MakeThis is a short summary of Skowronek's 1993 article "The Politics Presidents Make"<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>There is a cycle to all presidencies, and so presidents in similar political times can<span style="mso-spacerun:yes"> </span>be compared with each other, even through they may be separated by decades of time.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The idea of great presidents and incompetent presidents is not a difference of individual skills and ability (Neustadt) but arises out of the current political order (see below).</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents can be classified over two dimensions</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Their affiliation with, or opposition to, a given regime order</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The extent to which that order is robust or vulnerable</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><i style="mso-bidi-font-style:normal">Reconstruction:</i> the great regime over-throwers and builders – opposed to a vulnerable order.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Thomas Jefferson is best example because he operated in a near void of organized opposition at a very early moment in government development.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Jackson, Lincoln, FDR, Regan</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level7 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Can reconcile the order-shattering and order-affirming needs by creating new constitutional governance – so they are successful.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><i style="mso-bidi-font-style:normal">Articulation:</i> affiliated with a robust order.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><i style="mso-bidi-font-style:normal">Disjunction:</i> affiliated with a collapsing order.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><i style="mso-bidi-font-style:normal">Preemption:</i> opposed to a robust order</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><span style="mso-spacerun:yes"> </span>The presidency is order-shattering, order-affirming, and order-creating in its properties.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span><span style="mso-spacerun:yes"> </span>Finds there are 4 eras in presidential time (secular time)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Patrician Era (1789-1832)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Leaders who stood above faction and interests and governed on the strength of their personal reputation among notables.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Partisan Era (1832-1900)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Leadership was a form of executive patronage to party factions and local machines.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Pluralist Era (1900-1972)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The rise of bureaucracy and institutional elites required more complex bargaining and negotiating between competing interests.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Plebiscitary Era (1972 – current)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>More candidate-centered presidential campaigns and a greater emphasis on direct political relationships with the public.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Government has become so “thick” that it resists presidential initiatives and change – <i style="mso-bidi-font-style:normal">impasse</i> is the result.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Closes with the idea that all presidents should be preemptors now because the government is robust, and they should stand in opposition to this.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Gives no examples or descriptions of someone who would be this way.</p> <p class="MsoListParagraphCxSpLast" style="margin-left:2.0in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Gives no clear reasons why there should be a preemptor.</p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com1tag:blogger.com,1999:blog-1614375184739688528.post-69447072044689394202010-04-13T09:12:00.000-07:002010-04-13T09:12:00.179-07:00Canes-Wrone: President's Legislative Influence from Public AppealsHere is a short summary of Canes-Wrone's 2001 article "President's Legislative Influence From Public Appeals."<div><br /></div><div><p class="MsoListParagraphCxSpFirst" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Canes-Wrone (2001) President’s legislative influence from public appeals</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents must choose which issues to promote to the public.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The president will promote issues</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>On which his view is popular</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congress is not likely to act in the president’s favor unless the president goes public</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Assumes:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>President is rational and policy driven</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Going public has the effect of increasing salience</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congress do not always vote the way their constituents want (for a number of reasons)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congress will most likely vote the way their constituents want if the issue is salient to the public</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Going public too frequently causes people to pay less attention to the president </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Assumptions imply:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The president won’t go public unless the public supports his view – otherwise Congress will vote against him</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>A president should gain influence on policy issues he chooses to promote in public appeals (and does)</p> <p class="MsoListParagraphCxSpLast" style="margin-left:1.5in;mso-add-space:auto; text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>A president’s likelihood of appealing to the public over an issues will increase when Congress is likely to not act in his favor otherwise. </p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-2051134926916793262010-04-12T09:11:00.001-07:002010-04-12T09:11:52.235-07:00Kernell: Going PublicHere is a quick summary of Kernell's book, <i>Going Public</i><div><i><br /></i></div><div><i><p class="MsoListParagraphCxSpFirst" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level2 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Kernell (2007) “Going Public”</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>A shift away from Neustadt’s bargaining focus to a more confrontational tactic – going public.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Still using same pluralist world view: competing factions mobilize and counter-mobilize, persuading and arguing until policy arrives at what the typical citizen would want.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Going public: A strategy whereby a president promotes himself and his policies in Washington by appealing to the American public for support.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Also can be any political elite making a conscious appeal for support to their constituents.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Conflicts with bargaining because:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Includes fluff, not substance that is necessary for bargaining</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Doesn’t extend benefits for compliance, but imposes costs for noncompliance</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Entails posturing – which makes bargaining more difficult</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:3.0in;mso-add-space: auto;text-indent:-3.0in;mso-text-indent-alt:-9.0pt;mso-list:l0 level6 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Undermines legitimacy of other politicians.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Use of this strategy is on the rise because of: institutional change</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Can force a reluctant Congress to go along with a certain policy</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Against Neustadt’s idea of a “bargaining president”</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Change caused by changes to communication and transportation</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Involves major and minor speeches, travel and appearances, and a conscious appeal to the public.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Uses the public opinion to influence other lawmakers (indirect lobbying).</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Institutional change which caused going public to be a strategy:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Move from institutional pluralism (where every Congressman has the institutions to back themselves up) to individual pluralism (decline of party system).</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Traditionally politics in Washington were conducted in a system of mutually beneficial interactions and bargains. (Institutional pluralism)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Political elite were the decision makers</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Coalitions shape the system and options available to presidents</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>New Washington represents seniority, party system, and institutions are on the decline</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Congressmen support themselves by gaining access to constituents.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Less interested in sacrificing short-term goals for long-run bargaining. </p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Constraints on going public:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>It can politically embarrass the president if it fails</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>The message must be popular for this to have any effect</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Message/ballot fatigue</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Loss of flexibility (however Reagan often staked out a strong position and then caved in)</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Should be last resort.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:1.5in;mso-add-space: auto;text-indent:-1.5in;mso-text-indent-alt:-9.0pt;mso-list:l0 level3 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Going public is on the rise because:</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Bargaining between the executive and legislative branches has grown ineffective.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.5in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level5 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Since 1956 an increasingly divided government makes it harder to negotiate.</p> <p class="MsoListParagraphCxSpMiddle" style="margin-left:2.0in;mso-add-space: auto;text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Presidents are nominated by general public and not political elites, so no longer beholden to party leadership.</p> <p class="MsoListParagraphCxSpLast" style="margin-left:2.0in;mso-add-space:auto; text-indent:-.25in;mso-list:l0 level4 lfo1"><span style="mso-bidi-font-family:Calibri"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span>Also technology has made it easier</p></i></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-30523100878240908292010-04-10T10:44:00.000-07:002010-04-10T10:44:00.515-07:00Questions to answer about justiceThese are some questions about justice, posited by a professor. These questions concern the readings of Tocqueville (D<i>emocracy in America</i>), Ostrom (<i>Governing the Commons</i>), Aristotle, Plato, Schaar, Sandel, Rawls, and Isaiah Berlin. <div><br /></div><div>The questions are common questions about justice that students have when reading Plator and Aristotle, or having to compare Aristotle's concerns about a democracy to Madison's concerns in <i>Federalist 10</i>. The first questions - the difference between a liberal view of justice and a Greek view of justice - is important from a comparative perspective. The other questions are more about the substantive differences in the readings.</div><div><br /></div><div><p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">A comparison of classical Greek and liberal approaches to justice<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black">Classical Greek: The classical Greek approach to justice is one that is based on ends, the <i style="mso-bidi-font-style:normal">telos</i>, of the city-state. For the Greeks, everyone served their place in society so that society could reach its telos – the promotion of the common good. Aristotle wanted the city-state to enable people to live the good life, and that was an end. Additionally, inherent in the Greek idea of justice is the notion that justice comes from the Gods, the higher beings, and we are trying to reach that level of justice.<o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black">Liberal: The liberal concept of justice rest on individuals and procedures, rather than the commons and the ends. Also liberals do not believe that justice is from God, or from any higher being, rather that justice is a set of procedures which, if followed, mean that we are just.<o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black"><o:p> </o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">Sandel’s critique of Rawls’ veiled contractors, how he thinks his point affects Rawls’</span></b></span><b style="mso-bidi-font-weight:normal"><span style="color:black"><o:p></o:p></span></b></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">conclusions, and how Sandel would provide for what’s missing<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black">Sandel’s critique of Rawls: The basic idea is that Sandel believes Rawls’ commitment to right over good makes his idea of a person untenable. Sandlel believes that Rawls theory is untenable because it is asking people to think about justice, divorced from the very things that make us people – the characteristics that make us able to think about the concept of justice. </span></span>Michael Sandel argues that the concept of the self as a purely rational chooser on which Rawls relies is unrealistic since every individual is in fact already steeped in the values of their particular society, and will not be able to participate in society if they are truly the people represented as Rawls’ veiled contractors. For Rawls, the distributive principle – that everything must benefit those who have the least, the most – the idea that whatever an individual has is based on what accidental characteristics they were given; for example the model who earns more because she is beautiful earns more because it was luck, or an accident, that gave her those good looks. So, because what she has was given to her as an accident, the goods she has actually belong to the society, that society has a prior claim on her assets because as an individual she doesn’t deserve anything since what she got was acquired by accident. Sandel says that in order to assume a principle of sharing, which is what the distributive principle is – there has to be some common moral tie among the people in a society which states that sharing is good, and that sharing with those less fortunate is good, and that all people should have access to basic levels of goods. Otherwise, there is no reason why the acquired assets shouldn’t serve the needs of the person who got them just like they would serve the needs of the society who got them by accident. If there is nothing tying the people in a community, in a society, together, than how would the society really distribute the assets in a way that was better than the individual – who also has no ties to others. However, to suppose that a community must have a moral good that ties it together means that the veiled contractors, who are supposed to be devoid of any such ties, really are not the unencumbered selves that Rawl’s wants them to be. On the other hand, it might mean – if the individuals really are the unencumbered selves – that the community is really not a community at all and the goods are simply accidental to the community as well as to the individual so there is no reason that the goods shouldn’t be left to serve the arbitrary ends of the individual rather than the arbitrary ends of the community. </p> <p style="margin:0in;margin-bottom:.0001pt">Sandel says that to cure this deficiency, to really show that there is a way to distribute the goods, would be to require the difference principle to detail a way that the people who I am sharing with, who I hold things in common with, that I am morally indebted to do this with them. It is a constitutive and moral end of an individual that Rawls’ veiled contractors are denied, but need, in order to make the distributive theory work properly. <span class="apple-style-span"><span style="color:black"><o:p></o:p></span></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">Berlin and Tocqueville on positive freedom<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black">Berlin: Berlin believes positive freedom to be the answer to the question of: Who, or what, is the source of control or interference that causes someone to be, or to do, this rather than that? It is a concept of freedom that depends on factors internal to the person, rather than negative liberty which is the factors external to the person. Positive freedom examines the internal factors that cause someone, or a group of some people, to act autonomously. In the political arena, positive freedom is often seen of as being achieved through collective action: The degree to which a community (or state) is self-determining in accordance with the general will and an individual is free if they participate in this self-determination process. In a less political, and more individual sense, the concept of freedom means that an individual is free if they have a way to self-realize who they truly are.<o:p></o:p></span></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black">Tocqueville: Tocqueville uses the concept of positive freedom to describe the participation in American government. Tocqueville says that positive freedom is not just being protected from power, but participating in power.</span></span><span style="color:black"><o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black"><o:p> </o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">Democratic equality for Schaar<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black">For Schaar, democratic equality is being and belonging (equality of community and membership) and being treated equally under the law. Schaar disputes the notion that equality of opportunity is really democratic equality because all equality of opportunity leads to is people developing those talents which are highly valued by a given society at a certain time. Schaar says that equality of opportunity really leads to further inequality because it will lead to identifying those, at an early age, who are the best and giving them more resources – which is not equal at all. Equality of opportunity gives false hope because it doesn’t take into account the way people start off, or what they are really being given an equal opportunity to do. Instead, Schaar focuses on equality of belonging to a community – that everyone has the same ability and chance at this – and that everyone should be equal under the law. This is Schaar’s idea of democratic equality – which, as he notes, is not what is practiced in the world while he was writing. <o:p></o:p></span></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black"><o:p> </o:p></span></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black"><o:p> </o:p></span></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">Tocqueville’s question, concerning the majority’s power, whether he contradicts</span></b></span><b style="mso-bidi-font-weight:normal"><span style="color:black"><o:p></o:p></span></b></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">himself.<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black">Tocqueville asserts that in a democracy the people have a right to do anything, and the majority rules. He wonders whether these two statements contradict each other. <o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black">In a way he is contradictory, but he goes on to reconcile the contradiction. In his initial statement, that politically, people have<span style="mso-spacerun:yes"> </span>right to do anything, and that the majority rules there is a contradiction. If the majority rules, how does a person in the minority have a right to do anything if the majority has outlawed that as illegal? This is an inherent contradiction.<o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black">However, Tocqueville reconciles this point by saying that there is a higher law than the majority – it is the law of justice that a majority of humankind has agreed to, and laws the majority makes may not violate this higher law of humankind. If the majority does use its power to violate this higher law, then a person can disobey the law. Soverignty comes from the people, but the people don’t have a right to do anything they want. Instead they are confined to laws and decisions within the bounds of justice that the majority of mankind has agreed to. Additonally, Tocqueville points out that saying the majority can do whatever they want is the language of a slave, not a citizen, so a citizen who participates would never agree to the principle that the majority can do whatever they want. <o:p></o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span style="color:black"><o:p> </o:p></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><b style="mso-bidi-font-weight:normal"><span style="color:black">Ostrom’s contributions, if any, to a study of justice<o:p></o:p></span></b></span></p> <p style="margin:0in;margin-bottom:.0001pt"><span class="apple-style-span"><span style="color:black">Ostrom’s contributions might be, out of all the things we have read in the class, that she finds a way to blend the concepts of procedural and substantive justice regarding a single item. The other theorists speak of justice rather broadly, as applied to states and societies. Ostrom points to a form of justice regarding common pool resources. She combines procedural and substantive justice. Her idea of substantive justice, the end, is that it is good that common pool resources be preserved. She also says that there are certain preconditions that humans need – access to water, food, and fuel, and a legal system. To the extent that these are ends, she believes in a substantive concept of justice regarding these things. However, she also believes in procedural justice to reach these ends. She is saying that a procedure that is just respects everyone’s rights to use the common pool resource. This is procedural. So in respect to combining procedural and substantive justice into one theory, regarding a specific real-life instance, Ostrom does contribute to a study of justice. </span></span><span style="color:black"><o:p></o:p></span></p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-61124210054564351452010-04-06T10:39:00.000-07:002010-04-06T10:44:05.025-07:00Important terms for studying justiceHere are some important terms that every political science student should know when studying concepts of justice - whether it is procedural justice or substantive justice. <div><br /></div><div>The definitions may be a bit round-about, but they are synthesized from a lot of readings. The definitions of these terms are based on the following readings: J. Rawls, Schaar, Sandel, Ostrom (<i>Governing the Commons</i>), Kant, Aristotle, Plato, Tocqueville (<i>Democracy in America</i>), and Isaiah Berlin. They are commonly accepted definitions and can help any student get more meaning out of reading about justice and right in these theorists, which are hard enough to understand.<div><br /><b>cooperative ends vs. constitutive ends</b><div><b></b> Cooperative ends are ends in which people are simply working together but not engaged together as individuals; there is nothing about an individual identity to which they are engaging – they are simply together, working together. Constitutive means are a combination of the two above distinctions; they are both a means to an end, and a component to that end. This is possible, in the case of Aristotelian natural-end ethics, because of the inclusive nature of eudaimonia; it isn’t a dominant end that everything else is a mere means to, nor is it a simple and monistic goal. Rather, eudaimonia is inclusive and pluralistic; it is composed of the various goods (health, wealth, friendship, pleasure, etc.) and virtues (rationality, productivity, pride, justice, benevolence, etc.). Thus, being just, for example, is both a means to the ultimate end of eudaimonia, and an end in and of itself (because part of one’seudaimonia is being just).<br /><br /><b>“The polis is prior to the man”</b><br />The Greek idea of the polis as described by Aristotle and Plato is the conception of the highest virtue, a conception of the city-state and individual that meant achieving the polis was the highest expression of the common good, it was a moral good. Aristotle said that the polis is prior to the man: that this good exists before the individual. This is because, for Aristotle, the whole has to exist prior to the individual parts or else the individual parts have no meaning because meaning of individual parts is only derived from their working and their power – and individual things can only have work and power within the body of the whole. For man, who is a political animal (according to Aristotle) this means that the man as an individual can only have meaning within the state – so the state, the polis, is prior to the man.<br /><br /><b>Tocqueville’s formidable alternative</b><br />Tocqueville says that the formidable alternative is the decision a society must make about equality: whether rights are given to all or to none – for this is the only way Tocqueville sees that a government can be equal. When rights are given to none, Tocqueville describes this as domination and a single person with absolute power. Tocqueville says that even if rights are given to all, there is a drive in people for power, and that when rights are given to all, no one can stop someone from rising to absolute power unless they stop that person as a group. Americans, according to Tocqueville, have been exposed to this choice, rights given to all or rights given to none, and have chosen to give rights to all. Furthermore, having been exposed to this choice, Americans have managed to escape the absolute dominion of one man by their moral standards and intelligence. This is the choice a demand for equality forces on a society, and how Americans have replied to Tocqueville’s formidable alternative.<br /><b><br />“The right is prior to the good”</b><br />“The right is prior to the good,” is a statement about the difference between procedural and substantive justice, although there is a value statement inherent in this distinction. When philosophers say the right is prior to the good, they mean that everyone is free to pick their own good – their own end – and that we need to have the “right” – procedural justice – to allow everyone to do this. Saying that “the right is prior to the good” means that the way to get to the ends, the procedures used, need to be “just” so that everyone can get to their end. However, by making this statement – that it is the right thing to do to provide everyone the freedom to choose their own ends – you are inherently making the value judgment that procedural justice is more important than defining a substantive justice, a good end, and that is a notion of substantive justice in an of itself – that the “end” that needs to be just is the “procedures” that allow someone to choose their own end. In this sense, the rights of individuals cannot be sacrificed for a good, an end, and the rights cannot be premised on any particular definition of the good life.<br /><b><br />the meritocratic model of society</b><br />The meritocratic model of society is one espoused, somewhat sarcastically, by Shaar but with more enthusiasm by Plato. A meritocratic society is one in which people achieve a position based on merit – based on their individual qualities rather than on privileges of birth. Plato espoused this type of society when he divided his society into levels and said that each individual must serve at the level they are best suited to, and this sometimes means a child of farmers will be a guardian and sometimes the child of guardians will be a farmer. For Plato, a meritocratic model of society was ideal and helped achieve the common good of the state. Shaar was sarcastic in his idea of a meritocratic society. Shaar sees a meritocracy as a society which simply gives false hope to the poor that one day they can be in a higher class if they just work harder; he thinks that a meritocracy which says there is equality of opportunity (everyone can rise to the levels of their talents) doesn’t really exist. For Shaar, what a meritocracy will eventually develop into is a way of identifying, from an early age, those who are the “best” and giving them more resources – which doesn’t really enable everyone to rise to the level of their talents because not everyone is given an opportunity to use or develop their talents to the level they might be capable of. Shaar is being more descriptive of what America is like in his day, in comparison to Plato who is being descriptive of what a meritocratic model of society should look like.<br /><br /><b>the idea of a procedural republic</b><br />The idea of a procedural republic is a classical liberal idea. It is an idea that focuses on how just the procedures are that allow an individual to choose his ends. There is no notion that there has to be a just, or a good, end – simply that in a procedural republic everyone has to follow. A procedural republic is one in which the rules are not based on a sense of morality, that every individual should reach a certain end, but rather has rules which allow the individuals the freedom of choice to reach their individually desired ends.<br /><b><br />the tragedy of the commons</b><br />The tragedy of the commons is the idea that there are certain public goods that are consumable (they can be depleted) and that individuals, when acting on their own in their own rational self-interest, can take actions that will deplete this shared, limited resource even when that is not in the long term interests of the individuals.<br /><br /><span style="font-weight:bold;">a common pool resource</span><br />A common pool resource is a resource which is rivalrous and non-excludable. For a resource to be rivalrous it must be a resource that, once used by someone, leaves less to use for others. For a resource to be non-excludable it must be something that is not private property, that someone cannot say (legally) that you don’t own and don’t have a right to. An example of this would be the ocean. For a common pool resource, until an organization or institution is created, you cannot exclude people from its use but it does diminish. Organizations and institutions, for Ostrom, are seen as necessary in order to protect common pool resources.<br /></div></div></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-72396215149559933222010-02-26T21:52:00.000-08:002010-02-26T21:52:00.515-08:00NATO and energy security<p class="MsoListParagraphCxSpFirst" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.5in;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri; mso-bidi-theme-font:minor-latin"><span style="mso-list:Ignore">I.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Introduction<o:p></o:p></b></p> <p class="MsoListParagraphCxSpLast" style="margin-left:1.0in;mso-add-space:auto; text-indent:0in"><b style="mso-bidi-font-weight:normal"><o:p> </o:p></b></p> <p class="MsoNormal" style="line-height:200%">Energy is vital to every nation-state in the world. Whether the nation-state relies on natural gas, such as Saudi Arabia, nuclear energy, like some nation-states in Europe, or other forms of energy, each nation-state has an energy interest. For nation-states, energy provides the means to power everything from transportation and telecommunications to individual homes and hospitals. Schools and law enforcement rely on energy to power classroom, vehicles, and databases. The banking industry relies on energy to power the massive computer systems that enable the industry to exist. Factories that provide food and medicine to the world’s population rely on energy. A nation-state’s military relies on energy to power its vehicles and move its troops. Knowing all these things about the impact of energy, and its importance to the nation-state, the question remains; how does energy security fit into the current international relations (IR) theories and globalization theories? Does it?</p> <p class="MsoNormal" style="line-height:200%">The United States and European countries have already begun discussing the appropriate policies and institutions that could secure their energy security in the future. The Bush Administration, in February 2006, spoke of energy security at a NATO conference.<span style="mso-spacerun:yes"> </span>This speech was given with the support of Germany and Britain (Gallis 2006). The European Union has stated that they believe political and economic measures are the first step to ensuring their energy security, although they have yet to outline what those steps will be (Scaroni 2006). Industrialized countries are recognizing the need for energy security, and they are not alone. Developing countries, such as China and India, are engaged in active discussions with the Middle East to secure their energy security (Luft 2009). With all of these individual participants in the energy security debate, is there room for an international institution? Should an international institution, such as NATO, be a participant in energy security?</p> <p class="MsoNormal" style="line-height:200%">This paper argues that energy security can be understood by constructivism and neorealism – both current IR theories. Furthermore, this paper suggests that the North Atlantic Treaty Organization (NATO) should, based on constructivist and neorealist theories in IR theory and transformationalist and skeptic theories in globalization, make energy security one of its goals. Even though the motivations of the different theories and perspectives are different, the outcome is the same: NATO should be involved in energy security.</p> <p class="MsoListParagraph" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.5in;line-height:200%;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri; mso-bidi-theme-font:minor-latin"><span style="mso-list:Ignore">II.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Energy Security<o:p></o:p></b></p> <p class="MsoNormal" style="line-height:200%">What is energy security? Energy security has been defined as protecting the way a nation-state produces its energy (Morse and Richard 2002). This means that, for the global north, energy security means protecting the oil coming from the Middle East; keeping the oil flowing (Morse and Richard 2002). Energy security has also been defined as what a country needs, in terms of energy, to keep its economy and military at the same level it is today (Ebinger, 1982). </p> <p class="MsoNormal" style="line-height:200%">Energy security rests on three pillars: supply diversity, transportation diversity and fuel diversity (Rosner 2009). In terms of supply diversity, the Middle East continues to be the largest supplier. <span style="mso-bidi-font-family:&quot;Times New Roman&quot;; color:black">In 2006, the Middle East supplied 22 percent of U.S. imports, 36 percent of OECD Europe’s, 40 percent of China’s, 60 percent of India’s, and 80 percent of Japan’s and South Korea’s. Even oil- rich Canada is dependent on the Middle East. Forty five percent of Canada’s oil imports originate in the region<a style="mso-footnote-id:ftn1" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftn1" name="_ftnref1" title=""><span class="MsoFootnoteReference"><span style="mso-special-character:footnote"><span class="MsoFootnoteReference"><span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font: minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; color:black;mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language: AR-SA">[1]</span></span></span></span></a>. This means that supply diversity is low. Fuel diversity, at this point in time, among industrialized nations<span style="mso-spacerun:yes"> </span>is also low; they rely on oil for most of their needs, and use nuclear power and natural gas sparingly (Rosner 2009). </span></p> <p class="MsoNormal" style="line-height:200%">Energy security has been threatened, continually, since the oil embargoes of the 1970s and the price shocks of 1973 and 1979 (Wirth, Gray, Podesta 2003). Of the one trillion estimated barrels of oil reserves that exist in the world, two-thirds of that is found in the Persian Gulf (<i style="mso-bidi-font-style:normal">Ibid)</i>. Russia holds the bulk of that balance (<i style="mso-bidi-font-style:normal">Measuring Globalization</i>, 2005). Based on where the oil is located, the world’s dependence on oil, and how the world economy (and individual economies) suffered when oil prices spiked, it is in the interests of the world economy to stabilize energy sources so that such shocks do not occur (Goldstein, Huang, Akan 1997). President Carter said that curtailed oil production in the Middle East was a “clear and present danger to our national security” (Bucknell, 1981). </p> <p class="MsoNormal" style="line-height:200%">Energy consumption is higher in the global north than the south, although the global south – which holds the Persian Gulf – is the largest exporter of energy (Goldstein, Huang, Akan 1997). As of 1992, the data indicates that the political instability between the global north and the global south will create energy instability (<i style="mso-bidi-font-style: normal">Ibid</i>). When there is energy instability, there is a lack of economic growth (<i style="mso-bidi-font-style:normal">Ibid</i>).<span style="mso-spacerun:yes"> </span>Moreover, energy production that relies on oil – which is still most of the world – is subject to various political and economic instabilities like no other resources (Ebinger 1982). Essentially, the problem seems to be geo-political; the oil reserves are concentrated in an area of the world where there is internal and international political instability (Wirth, Gray, Podesta 2003).</p> <p class="MsoNormal" style="line-height:200%">Iran has, again, recently threatened to use its energy reserves to obtain political objectives. Mainly, Iran threatens to cut-off energy supplies to buyers if there are sanctions over its nuclear program (Gallis 2006). Whereas Russia, by increasing its internal stability and rule of law, has been able to increase its oil production in order to use the oil as a political bargaining tool with the West (Morse and Richard 2002).</p> <p class="MsoListParagraph" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.5in;line-height:200%;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri; mso-bidi-theme-font:minor-latin"><span style="mso-list:Ignore">III.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">A Very Brief History of NATO<a style="mso-footnote-id:ftn2" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftn2" name="_ftnref2" title=""><span class="MsoFootnoteReference"><span style="mso-special-character:footnote"><span class="MsoFootnoteReference"><b style="mso-bidi-font-weight:normal"><span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font: minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">[2]</span></b></span></span></span></a><o:p></o:p></b></p> <p class="MsoNormal" style="line-height:200%">NATO was first established in 1949 with its fundamental role to act as a deterrent against military aggression by the Soviets against the West. When the Berlin Wall fell, and the Cold War ended in the early 1990’s the threat of Soviet aggression also ended, and many thought that NATO would perish.</p> <p class="MsoNormal" style="line-height:200%">However, NATO has changed and expanded since that time hand has assumed new responsibilities, including a proactive role, in the international community. NATO undertook its first military operation in 1995, followed by operations throughout the world, including Afghanistan, Iraq, Africa and the protection of waterways from pirates. NATO has assumed a humanitarian role along side its military role.</p> <p class="MsoNormal" style="line-height:200%">When NATO was formed, it consisted of 14 countries. Today there are 28 countries that are members of NATO; this includes many former Soviet-republics and client-states. There are even more countries that seek a larger involvement with NATO through its “Partnership for Peace” program and other agreements that NATO has with non-member countries. </p> <p class="MsoListParagraph" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.5in;line-height:200%;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri; mso-bidi-theme-font:minor-latin"><span style="mso-list:Ignore">IV.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Analysis; IR and Globalization Theory<o:p></o:p></b></p> <p class="MsoNormal" style="line-height:200%">The question is; how does energy security fit into the current theoretical paradigms so that it can be analyzed and policy can be crafted to fit goals of the nation-states in relation to energy security? Interestingly enough, both the constructivist and neorealist IR theories, and transformationalist and skeptic globalization theories, offer answers to this problem. Whereas the constructivist and neorealist positions are normally at odds with each other, in the area of NATO becoming involved in energy security they both have valuable insight to offer. Additionally, the skeptic position and the transformationalist positions in globalization, which match with the neorealist and constructivist positions respectively, can add depth to the analysis that might otherwise be missing. Regardless of which pairing is used – neorealist/skeptic or constructivist/transformationalist – they both would argue that NATO should add energy security to its list of goals. </p> <p class="MsoNormal" style="line-height:200%">Realism is based in power (Morgenthau 1974; Waltz 1979). Hans Morgenthau, a realist, said that power can come from a monopoly or quasi-monopoly of scarce natural resources (1974). Waltz said that the state must use its power for the main goal of a state: survival (1979). Neorealists also believe that states must engage in balancing actions to balance the power of other states (Waltz 1979).<span style="mso-spacerun:yes"> </span>The balancing actions can result in alliances between nations when they strive to achieve the same end (Waltz 1979). <span style="mso-bidi-font-family:&quot;Times New Roman&quot;">In an international economic system, states have simple goals that show how they promote their self-interest and survival: economic utility, economic growth, social stability and political leverage (Kazenstein, Keohane, Krasner 1998). <o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">Globalization skeptics believe that the nation-state is still central, and that the world economy, and globalization, is really about the interactions of the nation-states with other nation-states in a manner that promotes the self-interest of the nation-states (Held, McGrew, Goldblatt, Perraton 1999). This ties the economic interests of a state under neorealism to the skeptic position in globalization by creating a list of motivations for states to participate in international economies, and international alliances, without engaging in actions that would lead to dissolution of their sovereignty (Kazenstein, Keohane, Krasner 1998).<span style="mso-spacerun:yes"> </span><o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">By using neorealism, it is easy to see why states should engage in energy policy with NATO. By engaging in an alliance in the framework of NATO, the various countries are able to ensure their survival in the international alliance. Furthermore, the balancing work of NATO is not finished simply because the Berlin Wall fell. Russia continues to engage in active national security policies designed to have its former enemies become dependent upon it for their energy needs (Rosner 2009). <span style="color:black">40 percent of EU gas imports originate from Russia, 30 percent from Algeria and 25 percent from Norway; By 2030, over 60 percent of EU gas imports are expected to come from Russia with overall external dependency expected to reach 80 percent -- and are </span>therefore susceptible to supply disruptions, extortion and price manipulations. So when Europeans talk about energy security their think primarily about electricity and more specifically natural gas, Russian gas (Luft 2009). This means that the EU, most members are also part of NATO, considers the need to balance Russian power and ensure that Russia doesn’t become too powerful, a survival, a national-security issue. Individually, each nation may not have much power to balance Russia, but by joining in an alliance they can ensure their energy security, and thus their national security. NATO, should engage in actively promoting its member nation’s energy security, according to realism.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">Additionally, NATO represents US interests. The US has already been engages in active military efforts to secure energy sources, along with other NATO governments (although not NATO as an institution) (Gallis 2006). The Carter Doctrine, put forth by US President Jimmy Carter in 1980, states that any attempt to prevent the flow of oil from the Persian Gulf to the US will be seen as an attack on US vital interests and will be repelled by any means necessary, including military means (Luft 2009). With the US putting forth such a strong military position on energy security in the Persian Gulf, someone, according to neorealism, should balance with position. That someone might be NATO. NATO can engage the various governments involved on how to protect against disruptions in oil supplies, and how to protect the various oil interests in the region, which would place the other countries in the NATO alliance in a balancing position against the US (Gallis 2006). <o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">Additionally, Russia has stated that it has not ruled out the application of force to maintain its position of hydrocarbon supremacy (Rosner 2009). Russia’s revised National Security Strategy to 2020 realizes that such a position might destabilize and unbalance the power in the region, but Russia seeks to maintain its energy dominance (Rosner 2009). According to neorealism, this action must be balanced against to maintain the balance of power in the world (Waltz 1979). NATO is the perfect balancer for this situation since its member nation-states in the EU abut onto the territory Russia controls. <o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">Furthermore, according to the skeptic position on globalization, all nation-states are acting in their own economic interests. This correlates with what has been seen in the world so far: Issues of energy scarcity have triggered levels of competition between NATO allies that might lead to military conflict if left unchecked (Rosner 2009). Additionally, the Middle East states are acting as a cartel that prevents other nation-states from securing their economic interests in the region (Luft 2009). Each time that there has been an energy crisis, the world has suffered a depression in economic terms (Luft 2009). Energy is vital to economic output in developed countries, and is vital to continued economic development in all countries (Wirth, Gray, Podesta 1003). In order to prevent more conflict from occurring over energy security, NATO should actively engage in energy security policies to create an environment where all nation-states can secure their future and promote their economic interests without the fear of engaging in a military conflict within the alliance (Asmus 2002).<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">NATO can enable nation-states to ensure their security and survival – the basic motivation of nation-states under neorealism. Additionally, economic interests of the member-states, under neorealism, mean that the skeptic position – engaging in international alliances to promote their economic interests in the interests of survival – encourages the use of NATO to sustain member nation-states’ energy security.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">The constructivist and transformationalist theories also agree that NATO should have a role to play, although that role appears to be different from the role under neorealism and skepticism. Constructivist theories state that the international organization of nation-states is what the nation-states want, and that it can be changed by changing norms and behaviors through international institutions (Wendt 1992). Transformationalists also believe in the role of international institutions; that international institutions are helping change the way that states believe in sovereignty, the way states act and that state behavior must change as they are no longer in exclusive control of what happens within their state boarders (Held, McGrew, Goldblatt, Perraton 1999). When these two positions are combined, they come to meld into a position that maintains that the world can change, and is changing, and that international institutions are a large part of this change (Shaw 1997).<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span style="mso-bidi-font-family: &quot;Times New Roman&quot;">NATO is an international institution, and its existence enables the constructivist and transformationalist positions to be realized in energy security. </span><span lang="EN-GB" style="mso-bidi-font-family:Arial; color:#333333;mso-ansi-language:EN-GB">The reality is that, by 2030 75% of NATO countries’ oil supply will be dependent on a handful of Middle Eastern states, and NATO’s European members will average 60% natural gas dependency on the Russian Federation (Dyner 2000). This means that the NATO countries must change the way they behave because the energy supplies are not within their nation-state boundaries, and they must consider the Middle East when making decisions (Wirth, Gray, Podesta 2003). <o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">By acknowledging the outside influences on the sovereignty of the nation-state, NATO nations are falling within the transformationalist perspective on globalization. This means, like the transformationalist perspective requires, the NATO countries must make use of international institutions – like NATO – to make changes in the world. If NATO countries are concerned about their energy security because most of their supply comes from unstable countries (Shah 2009), then the nation-states must make use of NATO to secure their energy security. With so many nation-states involved in the arena of energy security, it is possible that only an international institution, such as NATO, can prevent a geopolitical cold war over energy sources (Goldstein, Huang, Akan 1997).<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">NATO has a huge capacity, vested in its civilian and military structure, to analyze energy and its use from a military and civilian standpoint (Rosner 2009). Using this capacity, NATO has the ability, under constructivist theories, to change the way its member nation-states and others view energy. As China follows America’s past patterns, and engages in participation with the Middle East to secure its energy future, it becomes necessary to have international institutions present to prevent military conflict and misunderstandings (Luft 2009). Indeed, if China continues to follow in the footsteps of America, it could lead to a world full of conflict over energy; which is not in the best interest of any nation-state (Luft 2009). Instead, international institutions, such as NATO, should intervene and work with the various energy suppliers and consumers to create a stable environment for energy security (Luft 2006; Rosner 2009; Gallis 2006).<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">Furthermore, energy security rests on three pillars – one of which is diversity of sources. No one can attach blame for dependence on oil and natural gas in Europe, oil in America, and the developing world’s dependence on oil, to anyone nation-state (With, Gray, Podesta 2003). Instead, the international institutions need to be engaged in cooperating with nation-states to change the view of oil and natural gas dependence into dependence on a different source of energy. Only if energy sources are diversified will energy security be truly promoted; and only an international institution has the power to change such norms and beliefs in the international system (Bucknell 1981).<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%">The North Atlantic Treaty Organization (NATO) was originally formed to be a deterrent for Russian; to prevent Russia from becoming aggressive towards other European nations (Smith, 1990). However, NATO continues to exist long after its détente purpose has ended (<i style="mso-bidi-font-style:normal">Ibid</i>). In fact, NATO continues to grow and expand. As it grows, it searches for purpose. The growth of China and India, non-NATO countries, as energy consumers, and an inability to produce reliable and alternative energies to oil and natural gas, has led to energy producers needing to ensure access for all to energy sources (Scaroni, 2006). NATO already plays a role in energy security. NATO has many countries that desire a closer relationship with it, either through membership or its “Partnership for Peace” program; many of these countries are the ones who need to secure energy resources because they are energy consumers rather than energy producers (Gallis, 2006). NATO governments have been involved in energy security operations on their own, and there is no reason why energy security cannot become a goal of NATO (Gallis 2006). </p> <p class="Default" style="text-indent:.5in;line-height:200%"><span style="font-size:11.0pt;line-height:200%;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin">Another possible solution is alternative energy sources such as wind power, solar power and photovotalic solar cells. However, current research indicates that these power sources, if fully maximized, could only contribute 1.5 trillion kilowatt hours (kwh) </span><span style="font-size:11.0pt;line-height:200%;font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font:minor-latin;mso-hansi-theme-font: minor-latin;mso-bidi-font-family:Garamond">to the total net global electricity generation increase of 13.8 trillion kwh between 2006 and 2030<a style="mso-footnote-id:ftn3" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftn3" name="_ftnref3" title=""><span class="MsoFootnoteReference"><span style="mso-special-character:footnote"><span class="MsoFootnoteReference"><span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font: minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:Garamond; color:black;mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language: AR-SA">[3]</span></span></span></span></a>.</span><span style="font-size:11.0pt;line-height:200%;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin"> This means that alternative energy sources alone cannot solve the energy security problem facing most nations. Additionally, most renewable energy sources, other than wind and hydro-power, are not economically competitive with oil and natural gas energy<a style="mso-footnote-id:ftn4" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftn4" name="_ftnref4" title=""><span class="MsoFootnoteReference"><span style="mso-special-character:footnote"><span class="MsoFootnoteReference"><span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font: minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; color:black;mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language: AR-SA">[4]</span></span></span></span></a>. This means there still must be another solution to the energy security problem.</span><span style="font-size:11.0pt;line-height:200%;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-ascii-theme-font:minor-latin;mso-hansi-theme-font:minor-latin;mso-bidi-font-family: &quot;Times New Roman&quot;;mso-bidi-theme-font:minor-bidi;color:windowtext"><o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">There are problems with all of these proposals. First, realists thought that force could solve problems of energy security in the 1970’s, but they were wrong (Bucknell 1981). Force alone wasn’t sufficient. The problem was that energy security is a matter of asymmetrical interdependence – where some countries are more dependent on others than other countries – and military power alone has not proven to be able to conquer this dependency (Keohane, Nye 1977). Additionally, NATO has already become involved in energy security through its Istanbul Cooperation Initiative of 2004; the allies are in discussions with Bahrain, Qatar, Kuwait and the United Arab Emirates to build cooperation in energy security<a style="mso-footnote-id:ftn5" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftn5" name="_ftnref5" title=""><span class="MsoFootnoteReference"><span style="mso-special-character:footnote"><span class="MsoFootnoteReference"><span lang="EN-GB" style="font-size:11.0pt;font-family: &quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font:minor-latin;mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin;mso-hansi-theme-font:minor-latin; mso-bidi-font-family:Arial;color:#333333;mso-ansi-language:EN-GB;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">[5]</span></span></span></span></a>. However, the lack of stability in the area of energy security remains (Rosner 2009). It is unknown if time will solve these problems, or if another approach needs to be suggested.<o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">There is another aspect of energy security that needs to be fully expanded upon. The pillars of energy security include </span>supply diversity, transportation diversity and fuel diversity (Rosner 2009). Nuclear energy would solve some of the supply, transportation and fuel diversity problems that currently exist in energy security. Nuclear energy can be a different fuel from oil and natural gas, can be produced at home by most industrialized nations, and is a more reliable supply than oil or natural gas (Ebinger 2009). However, nuclear energy comes with its own set of problems. Most notably, there are problems of storage with the spent fuel – it remains radioactive for decades after it is no longer needed (Ebinger 2009). Nuclear energy also comes with proliferation problems: the material created through the enriching and processing processes, needed to create the nuclear material for civilian use, can also be used as military nuclear material by terrorists (Ebinger 2009). This means that there would have to be significant safeguards against proliferation by terrorists to protect nation-states from a nuclear threat (Ebinger 2009). There are also concerns about how to supply nuclear power to non-nuclear nation-states without those nation-states obtaining the information and materials they need to create nuclear weapons and become a nuclear power (Schneider, Thomas, Froggar, Koplow 2009). In order for nuclear power to become a viable option for the world, rather than just for those nations which already possess it, these issues need to be explored and solutions need to be found for them. </p> <p class="MsoNormal" style="line-height:200%">One possible solution, if the constructivist and transformationalist positions are correct, is to use the current international agencies to regulate and control nuclear power. The International Atomic Energy Agency (IAEA) could be used to help regulate these issues. However, Iran has posed a successful challenge to the IAEA’s jurisdiction – which can only be invoked if a nation-state allows the IAEA into its country. This is a limitation of the IAEA that would have to be addressed in order for the IAEA to be an international institution that can help with the transition from oil and natural gas power to nuclear power (Schneider, Thomas, Froggar, Koplow 2009). <span lang="EN-GB" style="mso-bidi-font-family:Arial; color:#333333;mso-ansi-language:EN-GB"><o:p></o:p></span></p> <p class="MsoNormal" style="line-height:200%"><span lang="EN-GB" style="mso-bidi-font-family: Arial;color:#333333;mso-ansi-language:EN-GB">However, regardless of the success of the approach at the current time, neorealism/sceptics and constructivism/transformationalists all would agree, for different reasons, that NATO is important to the energy security of the nation-states and should be involved in energy security policies.</span></p> <p class="MsoListParagraph" style="margin-left:1.0in;mso-add-space:auto; text-indent:-.5in;line-height:200%;mso-list:l0 level1 lfo1"><b style="mso-bidi-font-weight:normal"><span style="mso-bidi-font-family:Calibri; mso-bidi-theme-font:minor-latin"><span style="mso-list:Ignore">V.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span></span></b><b style="mso-bidi-font-weight:normal">Conclusion<o:p></o:p></b></p> <p class="MsoNormal" style="line-height:200%">The IR theories of neorealism and constructivism and the globalization perspectives of skepticism and transformationalists give weight to the idea that NATO should become involved in energy security. Neorealism and skeptics say that NATO should be involved for balancing issues and for protection of the nation-states’ continued survival. Transformationalists and constructivists say that NATO should be involved because it is only through international institutions, like NATO, that anything can change in the area of energy security. Although the reasons for NATO to be involved in energy security are different between the various theories and perspectives, the outcome – that NATO should be involved in energy security – is unanimous.</p> <p class="MsoNormal" style="line-height:200%">There are other questions raised by this paper that are left unanswered. One of the main questions is: To what extent should NATO become involved in energy security? Additionally, how would NATO address the ongoing instability in the Middle East that contributes to the pessimism about energy security in the future? There is also a large question of what role science, and the discovery of new technology will play in the quest for energy security. It is possible that another theory, or approach, would have the answers to these questions. Continued development of energy sources, energy storage and more energy-efficient technology will also help the energy security issue. It is up to science whether enough energy alternatives and energy-efficient technology can be developed to aid in the fight for energy security.</p> <p class="MsoNormal" style="line-height:200%">Energy security will continue to be a security issue, and an issue that all nation-states must address, so long as energy is needed. Regardless of where energy comes from, or how energy gets to where it needs to go, energy is needed. It provides the very basis for the current international society. Without energy, the world would change into something unrecognizable by today’s standards. In order to protect the world from energy crises, energy security should be an issue that all international institutions and nation-states are actively engaged in.</p> <span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font: minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA"><br /> </span> <p class="MsoNormal"><o:p> </o:p></p> <p class="MsoNormal" style="line-height:200%"><b style="mso-bidi-font-weight: normal"><u>REFERENCES</u></b><u><o:p></o:p></u></p> <p class="MsoNormal">Asmus, R. <i style="mso-bidi-font-style:normal">Opening NATO’s Door: How the Alliance Remade Itself For A New Era</i>. Columbia, NY, Columbia U. 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R<i style="mso-bidi-font-style:normal">eliance on Foreign Sources of Energy and Geopolitics.</i> Retrieved on 12/12/2009 from <a href="http://www.globalissues.org/article/595/energy-security#Relianceonforeignsourcesofenergyandgeopolitics">www.globalissues.org/article/595/energy-security#Relianceonforeignsourcesofenergyandgeopolitics</a>.</p> <p class="MsoNormal">Shaw, M. <i style="mso-bidi-font-style:normal">The State of Globalization; Towards a Theory of State Transformation</i>. Review of International Political Economy, Vol 4:3 (Autumn, 1997), pp. 497-513</p> <p class="MsoNormal">Smith, J, ed. <i style="mso-bidi-font-style:normal">The Origins of NATO</i>. Exeter, United Kingdom, U. of Exeter Press, 1990</p> <p class="MsoNormal">Waltz, K. <i style="mso-bidi-font-style:normal">Theory of International Politics</i>. McGrawHill, NY, 1979.</p> <p class="MsoNormal">Washingtonpost.Newsweek Interactive LLC. <i style="mso-bidi-font-style:normal">Measuring Globalization</i>. Foreign Policy, Vol 148 (May-June 2005). Pp. 52-60.</p> <p class="MsoNormal">Wendt, A. <i style="mso-bidi-font-style:normal">Anarchy Is What States Make Of It.</i> International Organization, Vol 46:2 (Spring 1992).</p> <p class="MsoNormal">Wirth, T and Boyden Gray, C and Podesta, J. <i style="mso-bidi-font-style:normal">The Future of Energy Policy</i>. Foreign Affairs, Vol 82:4 (July-Aug 2003) pp. 132-155</p> <div style="mso-element:footnote-list"><br /> <hr align="left" size="1" width="33%"> <div style="mso-element:footnote" id="ftn1"> <p class="Default"><a style="mso-footnote-id:ftn1" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftnref1" name="_ftn1" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote"><span class="MsoFootnoteReference"><span style="font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">[1]</span></span></span></span></a> <span style="font-size:10.0pt">Energy Information Administration, http://www.eia.doe.gov/imp/imports.html </span></p> <p class="MsoFootnoteText"><o:p> </o:p></p> </div> <div style="mso-element:footnote" id="ftn2"> <p class="MsoFootnoteText"><a style="mso-footnote-id:ftn2" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftnref2" name="_ftn2" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote"><span class="MsoFootnoteReference"><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font: minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">[2]</span></span></span></span></a> All information in this section was obtained at the official NATO website: <a href="http://www.nato.int/">www.nato.int</a>; a search was performed for “history of NATO” and this is the information that was collected.</p> </div> <div style="mso-element:footnote" id="ftn3"> <p class="Default"><a style="mso-footnote-id:ftn3" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftnref3" name="_ftn3" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote"><span class="MsoFootnoteReference"><span style="font-size:12.0pt;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin;color:black;mso-ansi-language:EN-US; mso-fareast-language:EN-US;mso-bidi-language:AR-SA">[3]</span></span></span></span></a> <span style="font-size:9.0pt;font-family:&quot;Garamond&quot;,&quot;serif&quot;;mso-bidi-font-family: Garamond">US Energy Information Administration , “International Energy Outlook 2009”, May 2009 </span><span style="font-family:&quot;Garamond&quot;,&quot;serif&quot;;mso-bidi-font-family: Garamond"><o:p></o:p></span></p> <p class="MsoFootnoteText"><o:p> </o:p></p> </div> <div style="mso-element:footnote" id="ftn4"> <p class="MsoFootnoteText"><a style="mso-footnote-id:ftn4" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftnref4" name="_ftn4" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote"><span class="MsoFootnoteReference"><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font: minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">[4]</span></span></span></span></a> <i style="mso-bidi-font-style:normal">Ibid</i>.</p> </div> <div style="mso-element:footnote" id="ftn5"> <p class="MsoFootnoteText"><a style="mso-footnote-id:ftn5" href="file:///F:/Energy%20security%20paper/NATO%20Paper.docx#_ftnref5" name="_ftn5" title=""><span class="MsoFootnoteReference"><span style="mso-special-character: footnote"><span class="MsoFootnoteReference"><span style="font-size:10.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;;mso-ascii-theme-font: minor-latin;mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin; mso-hansi-theme-font:minor-latin;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-bidi-theme-font:minor-bidi;mso-ansi-language:EN-US;mso-fareast-language: EN-US;mso-bidi-language:AR-SA">[5]</span></span></span></span></a> Istanbul Cooperation Initiative, NATO, Brussels, Jan. 2006</p> </div></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com1tag:blogger.com,1999:blog-1614375184739688528.post-46403123027320376162010-02-24T21:50:00.000-08:002010-02-24T21:50:00.461-08:00A general background for international political economy<p class="MsoNormal" style="margin-left:.75in;text-indent:-.5in;mso-list:l0 level1 lfo1; tab-stops:list .75in"><span style="mso-list:Ignore">I.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>What is IPE: interaction of economics and politics – how political forces influence economic decision-making and how political decisions can affect the economy.</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Substantially</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Reciprocal influence of politics and economics</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Economist: purpose of economy is to maximize wealth</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Gilpin: political economy studies how the wealth is redistributed</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span><b style="mso-bidi-font-weight:normal"><span style="mso-spacerun:yes"> </span>Trade, production, finance, and international development </b>is the substance of IPE</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>If we were interested in the politics of finance, how would we use Frieden and Martin to set up a research question:</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Interest, institutions and information</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1999-2008</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1999: Repeal of Glass-Stiegel</p> <p class="MsoNormal" style="margin-left:3.5in;text-indent:-.25in;mso-list:l0 level7 lfo1; tab-stops:list 3.5in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>so we look at House and Senate: motivations, interests that have mobilized around the institutions</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>By using this format, you can break down the domestic/international barrier and even use institutions that are multi-national</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Analytically</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Level of analysis is international and domestic and then the interaction between the two</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>How are the differences between international and domestic expressed? (Lake notes)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>International political view</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>International economic</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>domestic institutional</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>domestic societal</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Waltz (levels of analysis)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>International: this is what waltz wants to argue for (neorealism)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>State</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Individual</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span><o:p> </o:p></p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Theoretically</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Realism</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>state-centric </p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>system-centric realism</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Liberal</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Marxist (neomarxist)</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Constructivist/critical – tends to apply to IR, and is limited in its approach to IPE</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>agents influence structures which come back to reconstitute the agents</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Ideas influence structures; structures can influence ideas</p> <p class="MsoNormal" style="margin-left:.75in;text-indent:-.5in;mso-list:l0 level1 lfo1; tab-stops:list .75in"><span style="mso-list:Ignore">II.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Differences between Economics and IPE</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Gilpin: economists study the market and ho resources can best be used efficiently (rational actors), you can explain all behavior in market terms. But IPE looks at how the resources are divided</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Economists treat economics as a hard science rather than IPE which is treated as a social science: always one answer in the model for economics, whereas in IPE there is theory and some less of the “right” answer.</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Economists look at abstractions of markets; IPE starts with the assumption that markets are created by societies and so they are influenced by society</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Exogenous: Outside the variables included in the models</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Endogenous: Variables that are important and included in the model</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">f.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Market: Economists – an entity; IPE – created and embedded in a societal and historical context</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">g.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Purpose of Market: Economists – develop wealth and efficient use of resources; IPE – distribute resources</p> <p class="MsoNormal" style="margin-left:.75in;text-indent:-.5in;mso-list:l0 level1 lfo1; tab-stops:list .75in"><span style="mso-list:Ignore">III.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Evolution as a Subfield</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>19<sup>th</sup> century</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Ricardo</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Adam Smith: Wealth of Nations and A Theory of Moral Sentiment</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span><span style="mso-spacerun:yes"> </span>John Stuart Mill</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Marx</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>They were political economists because they looked at the interaction of politics and economics</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>20<sup>th</sup> century</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Professionalization of economics</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Marshall (1890)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Robbins (Early 1930s)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Emphasize <i style="mso-bidi-font-style:normal">methodological individualism </i>– all actors can be treated as individuals. They individuals always pursue their own self-interest through a cost-benefit analysis. </p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>All resources are scarce (neoclassical economists)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>All markets are natural – emerge naturally and can be self-regulating</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Professionalization of IR</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>First department of IR – University of Aberswyth in 1919 after WWI: Purpose – how to prevent another world war.</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>After WWII – the US became the leader</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Leaders in IPE:</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Koehane and Nye</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>When did the convergence of economics and politics occur in US?</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1970s and on because of a series of events…..</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>US hegemony declines</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1971 – Bretton-Woods, US taken off gold standard</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1973 – oil crisis</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1974- recession</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1976 – increasing unemployment, Britain goes to IMF for loan</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">7.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1979 – oil shock number 2</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">8.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1982 – debt crisis</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>In order to understand you need the integration of economics and politics</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">9.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>End of Cold War (late 1980s) – need more economics and politics to combine</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Developments within economics</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Public choice: Rather than market failures there is only government failure (failed policy) but not because people misunderstand economic policy it is because there are distortions in government.</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Keynsians were emphasizing market failure and how to prevent market failure</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Public choice people think humans are rational actors – but to the extent the government is a rational actor which pursues its own interest – it can intervene in the market to cause corruption</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Causes rent seeking behavior</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>No such thing as public good – only can pursue self-interest and individual goods</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>This approach gets public acceptance in 1962 when “Calculus of Consent” is published</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Neoclassical Institutionalism: Motivated by the economy and ignoring social factors – institutions are formed to promote the efficient use of resources</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>New Political Economy</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Economists who will apply basic assumptions of economics to the study of poliy/politics</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Within IR and IPE (Koehane articles)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1920 -1930s: Idealist is the predominant paradigm – institutions can be created to manage conflict</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Kellog-Brian Pact (Pact of Paris): All signatories to the league of nations will renounce violence as a foreign policy instrument – all conflicts would be resolved peacefully</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1931 – Italy invades Ethiopia and Japan invades Manchuria: there are no punishments, and so this approach is lost. </p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1960’s – 1970’s Realism (IR is about the unending struggle for power – just like all politics; politics is supreme over economics; states are the supreme actors)</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Transnationalism emerges as the challenge to realism</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>States are sometimes important, but sometimes international organizations can help</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>There are other areas that security issues</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Not a zero-sum game</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>The use of force is becoming less useful in international politics – not that it is unimportant or irrelevant, it’s just that force isn’t always the answer</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1970s</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Hegemonic stability theory: The presence of a hegemon makes the IR system more likely to maintain stability</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Realist interpretation: the hegemon will pursue the national interest (malevolent hegemon)</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Liberal interpretation: the hegemon can help create the conditions to purse the global or international interests – national interests can overlap with other interests – and create other motivations for the hegemon</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1980’s</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>NLI</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Even when the hegemon declines, the regimes will remain because the states realize it is in their national/rational self-interests to follow the rules and regulations of the regimes</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Neorealists</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Once the US begins to lose its status as the hegemon, it is unlikely that the international regimes will stay in place b/c the regime and the states cannot be self-governing…skepticism of international oranizations</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Constructivists: </p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>The regimes continue regardless of hegemony because the rules of the regime have become ingrained in the people</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>A continuation of the old debate between realism and liberalism</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1990’s: Constructivism vs. Rationalism (realism and liberalism are both rationalism)</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>For the rational:</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Agents (domestic focus) or structure (systemic focus)</p> <p class="MsoNormal" style="margin-left:3.5in;text-indent:-.25in;mso-list:l0 level7 lfo1; tab-stops:list 3.5in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>But don’t look at the interactions</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Material power</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>interests</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>For the reflective/constructivists:</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Identities</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Ideologies</p> <p class="MsoNormal" style="margin-left:3.0in;text-indent:-3.0in;mso-text-indent-alt: -9.0pt;mso-list:l0 level6 lfo1;tab-stops:list 3.0in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Agents and structures are integrated with each other and influence each other</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>vi.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>British school</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Argue that the American approach was wrong</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>focuses on historical and institutional approaches</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>more willing to look at critical approaches that combine traditional approaches</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">4.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Willing to include sociologists</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">5.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Tend to study more international development that the US</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">6.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Susan Strange: Critiqued regime theory</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Most prominent British IPE</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Regime theory is a device to legitimize US imperialism</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>The debate – realism/liberalism – is just legitimizing US and never considered the redistributional aspects of the regimes they were studying</p> <p class="MsoNormal" style="margin-left:.75in;text-indent:-.5in;mso-list:l0 level1 lfo1; tab-stops:list .75in"><span style="mso-list:Ignore">IV.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Overview and evolution of IPE – <b style="mso-bidi-font-weight: normal">Historical Junctures</b></p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Post WWI 19<sup>th</sup> century liberalism</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Repeal of corn laws (1846)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Tarrifs on grain applied by the British against anyone who tried to import grain to Britain (Germans and French really)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>This means that taxes applied to agricultural imports are reduced and eliminated</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Coben-Chevaliar in 1860’s</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Uk and France</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Agreed to lower tarrif’s to allow trade between the two countries</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Signifies that European countries are going to subscribe to liberalization of trade, finance and immigration</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">b.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>WWI - Return to Protectionism</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>US</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1921 safeguarding of industries act</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1922 Ford act</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>iv.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1930 Smoot-Hawlie Act</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>v.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1932 @ Ottowa conference</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>British go off the Gold Standard, and return to an Imperial Preference System (rely on colonies) signal protectionalism that has become institutionalized</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">c.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Post WWII</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>i.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Bretton-Woods Institutions</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">1.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>IMF (1944)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">2.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>World Bank (1945)</p> <p class="MsoNormal" style="margin-left:2.0in;text-indent:-.25in;mso-list:l0 level4 lfo1; tab-stops:list 2.0in"><span style="mso-list:Ignore">3.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>GATT (1947)</p> <p class="MsoNormal" style="margin-left:2.5in;text-indent:-.25in;mso-list:l0 level5 lfo1; tab-stops:list 2.5in"><span style="mso-list:Ignore">a.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>Becomes subsumed within WTO in 1995</p> <p class="MsoNormal" style="margin-left:1.5in;text-indent:-1.5in;mso-text-indent-alt: -9.0pt;mso-list:l0 level3 lfo1;tab-stops:list 1.5in"><span style="mso-list:Ignore"><span style="font:7.0pt &quot;Times New Roman&quot;"> </span>ii.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>G8, G7, G5, G3, G1: informal meetings of world’s largest economies </p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">d.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1973 – liberalization of finance</p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">e.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1995 – formation of </p> <p class="MsoNormal" style="margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1; tab-stops:list 1.0in"><span style="mso-list:Ignore">f.<span style="font:7.0pt &quot;Times New Roman&quot;"> </span></span>1990s – repeal of Glass-Stiegel</p>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-66280431170253204782010-02-22T18:28:00.000-08:002010-02-22T18:28:00.828-08:00Johns S. Mill on representationWhat is representation and why does Mill think that it is essential to good government? What are its potential evils?<div><br /></div><div><p class="MsoNormal" style="line-height:200%">For John S. Mill, representation is the best form of government. “<i style="mso-bidi-font-style:normal">The ideally best form of government is that in which the sovereignty, or supreme controlling power in the last resort, is vested in the entire aggregate of the community; every citizen not only having a voice in the exercise of that ultimate sovereignty, but being, at least occasionally, called on to take an actual part in the government, by the personal discharge of some public function, local or general”</i> (Chapter 3). For Mill, representation is essential to good government because is passes the “test” of good government; it has a high level of order and progress. For Mill, representation “<i style="mso-bidi-font-style:normal">promotes the good management of the affairs of society by means of the existing faculties, moral, intellectual, and active, of its various members</i>” [order], and improves “<i style="mso-bidi-font-style: normal">those faculties</i>” [progress] (Chapter 3).</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Representation, for Mill, means that the government is a completely popular government – the people vote. This is necessary in representation because only the individual will consistently stand up for their rights, that an individual is only secure from being disregarded when they get involved and vote for their rights, and that each individual’s vote will even out when they are brought into the aggregate will of the voters. This is the ideal of representation for Mill. This means, according to Mill, that each individual is responsible for the protection of his rights and liberties. Because representation is the only form of government that can protect the individual’s rights and liberties, it is essential for good government. </p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>This does not mean that Mill is an advocate for direct democracy – he is not. He advocates for a representative government.<span style="mso-spacerun:yes"> </span>This is where the people, or some “numerous portion” of them, “<i style="mso-bidi-font-style:normal">exercise through deputies periodically elected by themselves the ultimate controlling power” </i>(Chapter 5). For Mill, the “ultimate controlling power” is where one branch of the government can stop all government from doing anything – essentially a veto power. Mill states that in a representative government this power doesn’t have to reside with the people, explicitly, but does rest with them because they appoint the people in the government who then can exercise this power.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>One of the pitfalls of representative government can occur when the representative body tries to do the work of the government, rather than simply deciding on the agenda of the government. This leads to inexpert legislation and regulation of various aspects of life. For Mill, this pitfall is easily avoided. Instead of granting the representative body the ability to do the work of the government, the representative body is granted the ability to decide on the agenda of the government, and then the experts in the bureaucracy are allowed to do the work. This prevents the representative body from doing the work that should be done by experts.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>An example Mill gives, in Chapter 5, is how to draft legislation. In Mill’s ideal representative government, the representative body would decide what they want covered in a law, then ask the legislation committee – staffed by people who are experts at creating laws – to draw up the law. Then the representative body would vote on the law drafted by the committee and not be allowed to enter any amendments to the law. For Mill, this is a reasonable precaution to take because the representative body is not suited to doing the work – here the legislative commission would be doing the work – but only setting the agenda for the work. This avoids the pitfall of having the representative body doing the work of the government.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>These are Mill’s solutions to preventing the representative government form engaging in business for which it has no expertise. The other problem a representative body faces is that the assembly is too close to the industries/people being regulated and are influenced by the very people it is trying to govern (also known as capture). In order to solve this problem, Mill suggest that people be able to vote for whatever representative you wish, and not be governed by geography. An example of this would be voting for the California State Senate in a system where you simply vote for candidates, rather than for candidates from a district.<span style="mso-tab-count:1"> </span></p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Additionally, Mill believes that having proportional representation is better than having a majority vote because, he believes, you don’t have to vote for the person that you know, but you simply vote for what the person believes in. This enables government to remove the concept of a “safe district” which makes the elected representatives more responsive to the people and will create better candidates from which the people can elect representatives. This means that as representation improves, and as candidate quality improves, the issue of capture becomes less possible.</p> <p class="MsoNormal" style="line-height:200%">According to Mill, representative government can only exist when the people: (1) Are willing to be governed by representative government, (2) Are willing to do what is necessary to maintain the representative government, and (3) Are willing and able to fulfill the duties and functions that they must under a representative government. This means, that when any of these conditions fail, there will be problems in a representative government. These potential evils include: failing to invest enough power in the administration (bureaucracy) to do the work of the government, and the failure to develop active citizens; which is the “<i style="mso-bidi-font-style: normal">failure to develop by exercise the actual capacities and social feelings of the individual citizens</i>” (p. 120). <span style="mso-spacerun:yes"> </span>Mill also says that there are two problems that are specific to a representative government: That there are insufficient mental capabilities in the governing body and that the people become subject and controlled by an interest that is not their own (Mill calls these a sinister interest). </p> <p class="MsoNormal" style="line-height:200%">All of the issues Mill presents that could be problems in a representative government can be solved by having active participants in government. By “active” it is meant that the citizens take care of themselves, rather than have the government be paternalistic. This involves voting, being educated and looking out for the common good instead of sinister interests. </p> <p class="MsoNormal" style="line-height:200%">For Mill, sinister interests include majorities split by race, religion and economic status. These sinister interests don’t consider the good of society as a whole, but consider their majority status and work in their own interests. However, this can be solved by opening districts up so that people can vote for whomever they want. Then a racial minority can band together and get candidates elected to the representative body regardless of geography. The same is true for economic and religious minorities. This prevents great cleavages between classes and will result in a truly representative government, rather than just a majoritarian one.</p> <p class="MsoNormal" style="line-height:200%">If the people being ruled by a representative government become passive and are no longer willing to maintain the government, or are no longer willing to be controlled by their interests, Mill’s solution is to have a tyranny take over. He believes that a change in government will make a passive people become more active, which means they can progress from a tyrannical government – which can govern passive people - to a representative government. A change in government type is Mill’s prescription for people that have become passive and are no longer willing to maintain the representative government and do not want to fulfill the duties and functions that they must under a representative government. </p></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-90441226150527425592010-02-20T18:25:00.000-08:002010-02-20T18:27:45.166-08:00Finance and globalization summaryThis essay illustrates how the ideas of Gilpin, Held, and Castelles can be integrated into a cohesive whole while discussing globalization and finance.<div><br /></div><div><p class="MsoNormal" style="line-height:200%">Finance is another aspect of the world that is examined when globalization is studied. Just like the Multi-national Corporation and union analyses, the analysis of finance will use Held’s measurement system<a style="mso-endnote-id:edn1" href="file:///C:/Users/Natasha/Documents/CSUS/Finance%20and%20Globalization.doc#_edn1" name="_ednref1" title=""><span class="MsoEndnoteReference"><span style="mso-special-character:footnote"><span class="MsoEndnoteReference"><span style="font-size:11.0pt;font-family:&quot;Calibri&quot;,&quot;sans-serif&quot;; mso-fareast-font-family:Calibri;mso-bidi-font-family:&quot;Times New Roman&quot;; mso-ansi-language:EN-US;mso-fareast-language:EN-US;mso-bidi-language:AR-SA">[i]</span></span></span></span></a>.<span style="mso-spacerun:yes"> </span></p> <p class="MsoNormal" style="line-height:200%">The discussion of finance involves the comparison of financial flows over time. This is necessitated by the skeptic position which claims the world is less “globalized” now than in the golden era. In order to determine if the analysis of financial globalization supports the skeptic position, or supports one or more of the other positions, it is necessary to look at finance over time.</p> <p class="MsoNormal" style="line-height:200%">The skeptic position argues that the benchmark for a truly globalized financial system is the Gold Standard era, before World War I, and that the world today is not as globalized as the world then (Held 192). For the skeptics, the Gold Standard Era required that states subsume their domestic policies to the international rules of the Gold Standard system (Held 192). Today, according to the skeptics, the nation-state has not been undermined by the forces of globalization, that nation-states do not have to subordinate domestic economies and economic policies to the international system, and that although the role of the nation-state has declined, in some ways, in economics, it has increased in others (Gilpin 349).</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Extensity and intensity are the first two criteria examined when analyzing globalization. For the skeptics, the extensity and intensity were greatest in the late 1800s: the markets were truly supreme and the nation-state had little power over economic affairs (Gilpin 350). In order to be a member of the Gold Standard system, a country had to convert their currency into gold on demand and not restrict international gold flows (Held 195). For skeptics, this is the ideal of a globalized financial system; the nation-state being subject to the market. During the late 1800s the extensity allowed the international flow of finance to reach all over the globe; there was a global capital market, multinational banks, and a flow of money between countries, although the flow was highly uneven (Held 198). Additionally, the intensity, the net capital flows around the world, has not been reached at a similar level since that time (Held 198). Since, as skeptics argue, this is not the case today, then globalization is less than it was in the late 1800s (Gilpin 351).</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Transformationalists do not dispute that the extensity and intensity of globalization during the golden era were phenomenal, but instead state that the extensity and intensity still relied on domestic policy and a few countries, notably Britain, dominated the system (Held 198). It was centered in Europe, which made it regional rather than global in reach (Held 198). Compare that to today where almost all nation-states participate in the international financial markets either through international bonds, currency trading and setting interest rates (Held 222).</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>The intensity of the current market, for transformationalist, is much larger today. There is lending between banks- both in national and foreign currency – international bonds, stock markets, derivatives, and international money markets (Held 209). With all of these types of international financial flows, they are more global in nature and less regional. Europe does not dominate the flow of capital (Held 207) and more money flows to developing countries than it ever did in the golden era (Held 211). The various ways that capital and investment can flow without regard for national borders is unprecedented in the current time (Held 223). </p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Velocity is one area that is undisputed between the various viewpoints. Skeptics, transformationalists, and hyperglobalists all agree that velocity is faster today than it has ever been before (Held 223). This is because of the infrastructure and technological developments in the world. There was no internet to connect the world 24 hours a day, 7 days a week in the late 1800s. There is the Internet today. This allows for instantaneous communication around the globe in the financial markets. When this is compared to the trans-Atlantic cable that allowed for international telegraphs, there is simply no comparison. The velocity is much faster today than in any other period (Gilpin 352).</p> <p class="MsoNormal" style="line-height:200%">However, the presence of technology and communication between people is not the same as having a globalized financial system.</p> <p class="MsoNormal" style="line-height:200%">The area where there is the most difference between skeptics, hyperglobalists and transformationalists is on the impacts of globalization. For a skeptic, globalization would mean that nation-states must subordinate their national economic policies to the international finance market (Held 6). However, the skeptic maintains that in the world today, nation-states are just as important as the international financial markets and that the international financial markets only operate with the consent of the state, which means there is not globalization (Held 6, Gilpin 354). Skeptics also maintain that the ideal state of globalization, the golden era where the nation-state was required to subsume national economic policy to the requirements of the Gold Standard, is simply not met today (Gilpin 349).</p> <p class="MsoNormal" style="line-height:200%">A transformationalist would argue that the international market blurs the line between the nation-state and the international world, and that the international financial market forces nation-states to change the way they pursue their goals (Held 7). A hyperglobalist would argue that the international financial markets are eliminating the need for nation-states; that the nation-state is becoming obsolete in the face of international financial markets (Held 12). </p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>How does the international financial market impact domestic policy and the decisions of nation-states? </p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Nation-states have to manage macroeconomic policy which consists of fiscal policy and monetary policy (Gilpin 354, Held 228). The nation-state has access to the international fiscal markets for borrowing and financing its debt (Held 229). The nation-state must also consider issues of interest rates and capital mobility when managing macroeconomic policy (Held 229). However, simply because a nation-state must consider these does not mean the nation-state is in decline, or that that nation-state is forced by the market to change their policies (Gilpin 355). Instead, the nation-state must make trade-offs, as it cannot have fixed interest rates, autonomy in macroeconomic policy, and international capital mobility (Gilpin 354). <span style="mso-spacerun:yes"> </span></p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>For skeptics, if the world was truly globalized, then the state would not be able to affect its economic policy and would have to surrender to the global system (Held 192). However, the Federal Reserve still maintains a large control over the United States economic policy, the European Economic Monetary Union maintains control over its interest rates, and Chins has imposed controls on capital movement (Gilpin 355). If this were truly a globalized financial system, these domestic controls would not be possible because the domestic policy would have to be subordinate to the international policy and the nation-state would not be able to make the choices they do – like the EEMU, China and the Fed. Rather, the presence of the international financial system has made macroeconomic policy more complex (Gilpin 357), but has not negated the importance of the nation-state.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Castells, a hyperglobalist, admits that most of a nation-states’ economy is based on the domestic sector, but claims that the globalized core – the financial markets – creates a global economy that influences and diminishes the nation-state (311). In the financial markets, money can move instantaneously and at any time of day or night because of the Internet (Castells 312). However, this is an argument about velocity, not about impacts. The impact of the international financial markets cannot be seen merely in the presence of technology – that is infrastructure- but must be seen in how the nation-state is making, or not making, its own decisions. The lack of information from hyperglobalists about the impacts of the transactions, rather than merely showing that there is more velocity in the transactions, supports the skeptic position that globalization is being exaggerated.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Transformationalists also under-emphasize the impacts of financial globalization on the decisions of nation-states. In order for the transformationalist perspective to be the one with the most support, they would have to show that the globalization of international financial markets is changing the way that states think about sovereignty and the way states make decisions.<span style="mso-spacerun:yes"> </span></p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>Although the presence of international markets has changed the way that nation-states do business, it is still the nation-states doing the business (Held 229). It is the German Bundesbank that determines the inflation rate, monetary supply and economic policy of Germany and although international markets have made this more complex, they have not taken that authority away from the German nation-state (Held 229). Financial liberalization has given nation-states more options regarding their finances, like borrowing from investors who might impose terms and conditions on the borrowing, but it is still the nation-state making the choices (Held 229). What this might signal is a shifting in the way a state thinks of itself. Instead of thinking that everything the nation-state does must be paid for by the nation-state, the nation-state might be willing to enter the international bond market and accept a reduction of its ability to make decisions in the future (Held 230). However, it is still the nation-state that must make the initial choice to reduce their abilities, and not all nation-states make this choice. This means that the nation-state is still the primary actor.</p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>The strongest argument against the skeptic position is the way that risk is distributed throughout the system (Held 233). If the markets are truly globalized, then the risk of the market will be globalized as well. What happens when one market crashes in a globalized system? All markets crash. This is what happened in 1982, and in 2007-08 (Held 233, New York Times). The risk of the system was spread among the world and was not confined to one area, or one nation-state (Held 234). </p> <p class="MsoNormal" style="text-indent:0in;line-height:200%"><span style="mso-tab-count:1"> </span>The hyperglobalist and transformationalist positions simply do not have enough evidence to support them. While these positions claim that the state is declining in importance, the state, even in their proffered evidence, does not seem to decline in importance. Markets, such as stock markets and futures markets, are nationally based. Nation-states make decisions to seek out loans with certain terms and conditions. Nation-states still set domestic economic policy. While the nation-state may take into account certain international financial issues, it is unclear that the nation-state is declining in importance or in their decision-making power. This leaves the skeptic position, that globalization is being exaggerated, as the strongest position.</p><div style="mso-element:endnote-list"><div style="mso-element:endnote" id="edn1"> </div></div></div>Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-37369993848681440522009-12-12T18:06:00.000-08:002009-12-12T18:06:00.255-08:00Globalization: UrbanizationI. Urbanization<br />a. Relationship to globalization<br /> i. TF – How transformationalism - and similarities between Held’s concept of transformationalism and how Davis explains the process and consequences of urbanization?<br />1. Basic definition of transformationalism: change in the identity of the state and the role is provides/ change in identity or state actors (using sovereignty as leverage in negotiations, negotiating policy instead of state actors having complete control over it)<br />a. Rosenthel – American FP going back to the mid-to late 1970s: Domestic policies are inter-related with foreign policy – a blurring of domestic and foreign policy (interdomestic policy)<br /> i. What’s the blurring for Davis: The blurring of the rural and the urban – which is similar to the blurring of domestic and international (periurban)<br />1. How can the 3rd world become present in the urban core of countries?<br />a. Urbanization with de-industrialization (Africa)<br />b. Low standard of living/sleeping on the streets<br />2. How can the 1st world become present in the periphery areas of countries?<br />a. Migration of the rich to the suburbs<br />b. Land becomes a commodity and there becomes speculation<br />c. Physical capital moves from the cities to the rural areas where there are resources<br />2. Davis: the state fails, should protect and provide for its citizens, but the mega slums are an example of where the state might as well not exist and instead the mega slums are regulated within themselves by an organic approach. The traditional identity of the state as providing services no longer applies – in many places it cannot provide them. So in Davis – the role of the state is to (1) form alliance with transnational capital/elite networks and (2) the purpose of the state becomes, to enrich its leaders – this is in mega slum world where there are no longer services provided and instead the state becomes predatory and becomes capital accumulation for the state.<br />a. Most severe example: of elite forming alliances with transnational capital and forming elite networks – then not paying the police and military who end up extorting money from the citizens – CONGO – this is his example of where the state is so predatory it has abandoned the traditional patronage system with the military.<br /> ii. Polanyi: Markets become disembedded from the society in which they represent<br />1. Davis makes reference to the elites in the cities becoming disembedded from the economic, social, and political lives of the local communities.<br />a. If one is coming from the neo-Marxist/skeptic or neo-Marxist transformationalist perspective – this would resonate.<br />2. <br /> iii. Economic Forces<br />1. SAP (structural adjustment programs) have exacerbated the mega slums (associated with globalization) – because domestic policies are constrained by international forces;<br />a. Forcing countries to open up their markets without allowing for protectionism (which is what neoliberalism is requiring) – which is the opposite of what the developed countries did.<br /> i. Related to globalization because: creating networks<br /> ii. How can leaders ignore their people and follow the policy prescriptions of the World Bank<br />b. Structural development isn’t the decline of the state in Africa –that started much earlier.<br /> i. Neoliberalism – roll back the role of the state<br /> ii. So in states which are required to have structural reforms, like ones that get World Bank money, they are required to roll back the role of the state in all things- including fighting poverty and instead letting NGOs take over.<br /> iv. Political Forces<br />1. Consolidating companies: Big agri-business taking over subsistence farms: this is related to structural adjustment when regulations have to be loosened and then you end up with big business oligopolies over main exports of first-level agricultural resources.<br /> v. <br />b. <br />II. Planet of Slums: His whole book is based on secondary sources/very little primary research<br />a. Ch 1 – facts and figures<br />b. Ch 2 – Slum – what is it?<br /> i. Housing market is illegal/underground<br /> ii. No government services – like water and power<br /> iii. Difference between late 19th century definition and today – lack of moral dimension. Late 19th century said the slums were morally degenerate people.<br />c. Ch 3 – factors responsible for slums<br /> i. Treason of the state – factors responsible for the slums<br /> ii. First ½ of 20th century (pre-independence); why were slums smaller pre-1950s? Because the colonial powers wouldn’t allow the indigenous people to live in the cities, so no slums could form.<br />1. Racially segregated living that was strictly enforced<br /> iii. What factors account for dramatic increase in slums after 1957<br />1. Independence and de-colonization<br />a. People were interested in moving towards the cities because that’s where the government was spending money – jobs, opportunities for education, important ethnic groups, resources – were all in the cities once the segregated barriers came down after independence.<br />b. Civil war causes people to move to the cities<br /> iv. <br />d. Ch 4 – self-help/1908s – today<br /> i. Why is he so critical of micro-enterprises?<br />1. They don’t help enough people.<br />2. They don’t address the structural causes of poverty, like under-development<br />3. Originally suggested by left-NGOs along with other reforms – but then they are co-opted by people who think that “individual responsibility” is the best way to go with micro-enterprises<br /> ii. Makes a comment about commuting – people in Nigera commute 3 hours to get to work.<br />e. Ch 5 – Role of indigenous elites “governmentality”<br /> i. Role of housing: Wide blvds allow for troop movement and good line-of-sights<br />1. Tear down poor areas and build up rich ones<br /> ii. Beautification<br /> iii. Foucault – people, when they have been out of power and come into power, embrace the norms of those they tried to overthrow<br /> iv. Davis – “governmentality” is when the people in power by into the elite opinion and say that it is perfectly ok to have large amounts of poor people<br />1. The African elites internalize colonial ideas – the same types of controls and surveillance are used<br />2. The African elites want to be elites and so don’t see anything wrong with hoarding the resources<br />f. Other<br /> i. Ecology<br />1. Biggest threat for death if one lives in a slum – disease (children under 5 – dysentery)<br />2. Second leading cause of death – Fire (lack of resources to put it out)<br />3. Very little violence in slums, but lots of crime.<br />4. Housing built near chemicals and stuff<br /> ii. SAP Third World<br />1. What is the political dynamic involved in structural adjustment programs?<br />a. How does it affect middle class and elite in housing?<br />b. They qualify for subsidies for housing, and people will be hesitant to tax them.<br /> iii. Surplus Humanity<br />1. What is to be done?<br />2. TBA<br />3. Resistance to slums should be studied and the places they have found should be implemented elsewhere<br />III. Other Aspects of Cities<br />a. Saski<br /> i. How does her analysis differ from Davis?<br /> ii. She looks at the core rather than the periphery<br /> iii. Cities are more important because that is where all the capital is<br /> iv. Human migration patterns<br /> v. New finance economy is dependent on cities for creation of new products and maintenance of that system<br /> vi. Views of land are more “city to city” and ignore the periphery<br />1. Shift to real estate becoming a commodity and part of the financial economy<br />b. Norris – Global governance and cosmopolitan citizensNatashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-21777737354904300452009-12-10T18:05:00.000-08:002009-12-10T18:05:00.853-08:00Political theory: HegelNo one really understand Hegel - except Hegel. So here are some notes to try and help those of you who are as confused as I am about Hegel.<br /><br />What’s compendium? Takes existing knowledge and organizes it – Hegel says it “has as its subject matter the entire compass of a science” (everything important).<br />Hegel says that there is a form to the compendium – what is a form? All the subject matter is the ideas on the subject – how you arrange it in pages is all set down in a “form” – common form is “alphabetical” but every book has a form – it’s in the Table of Contents – sometimes in time-order – sometimes by concepts (small to big; basic to complex; the idea you start on to build other things) – this is the way that someone who is a theorist/scientist might be inherently used to.<br />He wants to say that philosophy is the only true science – but that isn’t true because there is nothing that builds on each other and then supersedes it (like physics and math do; they progress). Philosophy doesn’t progress like science – they are opposites.<br /><br />Hegel is interested in making philosophy scientific.<br />He doesn’t want things to be arbitrary – we are going to want some kind of speculative way of determining ideas.<br />Will is about determination; right is about some kind of standard<br />Right – starts with seeming like an abstract concept – what does it need to do to have any kind of meaning? It’s abstract- has no content. So it needs to have content and context – definition –<br />The Will – he says is completely negative<br />Can free will really be free if it is bounded/determined by something external? This is what Hegel thinks that “thinking” is – and he wants to try and structure this. Will starts as choosing, then goes to choosing among desires, then choosing among the orders of desires, then whether choosing is arbitrary or a free choosing.<br />Who am I? An abstract concept….I externalize my internal feelings……so there is a relationship between the abstract concept and the externalization of that concept (like a tattoo of an individual’s name)<br />There is also a connection between the external and the individual (Hegel sometimes call this the negative)<br />- This is like a 2 year-old, teenager, or 18 year old child…. When the standard of right becomes “I” and not the “external” – when they want to do what they want when they are testing their boundaries …<br />- Home décor is all about expressing yourself in the external world – finding the individual personality in the external world – giving you content.<br />- So we need some kind of development where things get resolved (at least for a moment, because Hegel is saying things are only resolved for a moment because the resolution is simply the next step of the externality).<br />- Hegel wants you to say “no” and then move to the next step in the argument and argue with it rather than be like a 2-year old and take a “no” and have that be the end of it.<br />Hegel says that thinking isn’t the adding together of facts, but like the development of a plant out of a seed.<br />Right is what should be done – and we want to know, what is that.<br />So, go to will – will is what I want to do – I is the absolute abstract, capable of negating anything and can look at any external standard and negate it whenever it wants to say no – so the problem becomes the “I” because it is the absolute abstract.<br />Hegel is very circular – like a spiral staircase – you go back over and over the same point, but they go higher and higher in thought quality<br />So if I want to make choices based completely in free will – my choices are going to be arbitrary because you are not choosing based on any standards or guidelines – but is that freedom? No, because that doesn’t mean that you are choosing freely<br />-Choosing arbitrarily means that you are determining based completely on the externalities; you are choosing depending on what it around you when you are choosing – there is no rhyme or reason to things<br />- It isn’t really freedom if you are choosing without thinking (rationalization) then it is just arbitrary and animal, not thinking and freedom. It’s not freedom, its reaction.(Free will and determinacy) – there are problems with these abstract concepts – because these are formal – the way in which these appear (free will and determinacy) [by appears, he means the way it takes shape/form/external] – this shows up as a dialectic [ type of argument with many voices] of these desires<br />- what does it mean to be ”good” – that you desire the right thing, because you desire the right which is what is truly you<br /> - if man is “evil” means that the immediate desires of man is bad.<br />- so what do you have to do to determine which of these is true – you have to determine the impulses.<br />SO we are not simply going to rely on the internal desires, but we are going to order them according to which grants us the most happiness (an abstract concept) –<br />Hegel says that in some way, everything is true, and everything is simply not right.<br />This is called a reflective equilibrium<br /><br />Justice Consent<br />Aristotle Locke/Hobbes<br />Plato<br />External standard Internal standard<br />Right Will<br /><br />Add these (or subtract them) and you get Hegel<br /><br />· Abstract concept – What is it?<br />o No definition (content)<br />§ Coherent understanding of the term<br />o Not real (context)<br />o Not true: Is it not true? Can abstract be true? If truth relates to definition and reality, and abstract concepts don’t have definition and reality, then there can be no truth to it.<br />o Concepts are leading to ideas which have these three things.<br />· What about true and false concepts?<br />o Can there be false concepts? False ideas about this world? It’s when the idea in the head doesn’t match up with the reality – the internal doesn’t match up with the external.<br />o So for something to be a true concept – the idea must match up with the external world. The idea must sync with reality – it’s not a deliberate process because you cannot will reality to match with your ideas.<br />§ Understanding the way the world is – this can be a true concept –<br />§ So what does it mean for someone to “know” something – to be a true concept?<br />· It means, at some level that what is going on in their head and what is going on in the world are in sync.<br />o But you are supposed to know yourself.<br />· Free will is an abstract concept<br />o This is where we start talking about right – it is abstract<br />o “I” exist in and for itself: Self-conscious (for itself), being conscious (existing in): I exist and I know I exist<br />§ Be a subject – doing the acting<br />§ And an object – acted upon<br />· So what is a person?<br />o An individual will – not just a “will.”<br />o Someone who is self-conscious is a person because they know themselves<br />o If you are simply externally driven, you are a thing/object<br />§ You can have a good object, but a good object gets its goodness and badness externally – not from internal decisions<br />o A human being has a conception of itself as a person, that is connected to its conception of choosing between right and wrong<br />§ So what makes the difference between an 8 year old reason and an 18 year olds perception of right and wrong?<br />· Experience – the thing that helps the abstract concept become a concrete concept and match up with reality<br />o A human being has a drive<br />§ Going from the conceptual world to a tangible one – to exist<br />§ It means making plans a reality – this is the drive<br />§ Possession – owning things, making the dreams a reality<br />· What is the “stuff” of possessions – it is yourself<br />· What is your first possession – your body<br />· What is the second possession – things you grab<br />· What is the more adult way of possessing things – having your brain recognize that the object is yours whether it is in your hand or not<br />o Why is this a better form of possession? The body < mind<br />§ Possession: ping something of yourself into something else: Putting an idea into the marble to create a sculpture<br />· Because something is not a person, you can own it/possess it; bend it to your will; put yourself into it<br />o Kind of like, mixing your labor with the land to create ownership<br />o You have to produce things in the outside world – you are not real until you make something real in the external world.<br />· Contract is the way of knowing that other people recognize that you possess things<br />§ Why do people want headstones, to have kids etc: To express yourself as a person, to put your mark on the outside world – kind of like dogs peeing on trees.<br />· This is where we need property – the will needs to become real (section 41)<br />· And we do this through things – which are the opposite of a person<br />o Things don’t have self-consciousness<br />o You can mold things to your own will<br />· Person/Thing<br />o I/Objects<br />o Which is more real – it depends on how you are feeling<br />o Things are real – they have substance<br />o Things are merely things – what is he “mere” aspect? Why don’t you want to refer to people as things- because people are not things that you should just mold.<br />§ Hegel is upset that the Romans thought that people could possess children like they were things. Hegel thinks that children are people too<br />o Because things do not have rights, what can you do to them? Anything you want.<br />§ You cannot do that to a person because that would be doing something illegitimate.<br />§ You would be violating people’s rights/violating a person if you did whatever you wanted to do with them.<br />· What does it mean that a human being has the concept of “mine?”<br />o It means that a human can develop the concept of “mine” from being physically attached to it, to owning t with the mind to…..<br />o There are three ways to develop “mine”<br />§ (p.84) physical seizure<br />§ Giving it form<br />§ Designating ownership<br />§ Section 55 – from the point o view of the sense, physical seizure is the immediate way of taking possession – but it is limited in scope and temporary<br />· Use of things – possession<br />· Abstract I: seizure, use, body (you aren’t really in it yet)<br />o The realness is: Marking, value, mind<br />o This is when you penetrate matter with thoughts – taking abstraction and adding thought to make it in an external form and making it real – giving it meaning<br />§ Meaning is an idea<br />· What does it mean for something to be alienable –alienability of property<br />o You can take your will out of it<br />o Simplest meaning – you can throw it away<br />· Property – because it is an external thing – exists for external things<br />· The relationship of will to will is where freedom has its existence<br />· Wrong (Section 82)<br />o You don’t know what is right (unintentional)<br />o Deception<br />o Crime<br />· Why is purpose important?<br />o I act, so what am I responsible for?<br />o If I was responsible for every consequence, then that would absurd<br />o Your purpose defines the limits of your responsibility<br />o What you are intending to do<br />· What is intent important for?<br />o Welfare – what you want to achieve<br />o You have to have a link between the action and what the welfare is<br />o Intention matters<br />o But you cannot completely absolve things even if the intention isn’t there<br />o Part of the problem for morality is trying to determine what it is that you should intend, or count as intention, in actions.<br />· What does conscious matter for?<br />o Anything you like<br />o Believing in good and evil<br />o Relates to good/duty – what you should do.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-26031743856192685612009-12-09T05:59:00.000-08:002009-12-09T05:59:00.235-08:00Afghanistan and globalization: an author's perspective from 'Winter in Kabul"These are notes on globalization and how it relates to Afghanistan based on the information provided in "Winter in Kabul." It should be noted that I don't agree with what the author presents, but rather I am presenting it to help others who might need the information.<br /><br />Afghanistan<br /><br />I. Basics<br />a. 34 Provinces<br />b. GDP $2.3 billion/per capital $800<br />c. Pashtuns 42%<br />d. Tajiks 27%<br />e. Hazara, Uzbek etc – 3%<br />f. Sunni 80%<br />g. Bonn Conference 2001:<br /> i. The transitional government is named:<br />a. Warlords were the ones who were able to take power- they are the mujahidin<br />b. Constitution in 2004<br />c. First presidential elections at end of 2004 – Karzai wins – kind of re-elected in October<br /> i. Worked for Unical during the transitional government<br /> ii. When members of the Taliban come to th State Dept in 1997, he plays a role in those negotiations<br />d. <br /> ii. Flaws: Women’s rights are pushed way down and not given, women’s rights are trampled on<br />h. International Security Assistance Force (2003)<br /> i. It gets turned over to NATO<br /> ii. Also the American Forces separate from NATO<br />1. Mission: Build stability and nation-building<br />II. In the Streets<br />a. Causes of conflict<br /> i. Between families<br /> ii. Between tribes<br /> iii. Between ethnicities<br /> iv. We armed them<br /> v. Domestic:<br />1. Want to control the poppy trade, water, trade routes<br /> vi. Regional forces:<br />1. Ideological forces (communism)<br />a. The conflict isn’t over whether Islam should be the religion – but whether the fundamentalist Islam should rule or not.<br />2. Kashmir conflict has resulted in multiple states/multiple nations in close geographical proximity – creates conflicts (India/Pakistan)<br />3. Control over trade routes<br />4. Tribalism<br />5. <br /> vii. International factors<br />1. Ideological: Permanently undermine communism<br />2. Natural resources: build a pipeline (economic interest)<br />3. Geopolitical: Deal with terrorist networks; Prevent Iran to become a regional hegemon in the region.<br />4. Military reasons: Stability; preventing the Taliban from coming back into power because the US has made an enemy out of them and they will attack the US<br /> viii. <br />b. Critique of American Foreign Policy<br /> i. Carter (1973-19): Soviet Invasion; US response: Arm and train the mujahidin against the Soviets (tens of millions); US getting information from ISI (Pakistani Intelligence) and recommend an extreme violent fundamentalist for the leader<br /> ii. Reagan: Continuation of the same policy<br /> iii. Soviet withdraw 1989<br /> iv. 1989-196: Civil war; the different factions are fighting for power<br /> v. 1992 – Transitional government; which then breaks down into civil war<br /> vi. 1996 – Taliban comes into power<br /> vii. Problems with this: We armed and supported a non-democratic/extremist position in the country because we relied on non-reliable sources and were too eager to prevent Iran from having power (suggesting the moderate who should be in power). The US’s distain for communism is so strong that it turns its aggression against a moderate in support of the extremists/fundamentalists<br /> viii. Problems: The US has no ability to know the region and so cannot interpret any intel they are getting, and they are getting bad intel – the US thinks that what is good for America is good for everyone.<br />III. Prisons<br />a. Constitution<br /> i. Sources of law: Custom, Sharia, Penal/Civil code<br /> ii. Sources of misogyny – all the laws<br /> iii. What hope of change? Not a lot, but they have the theoretical right to vote; so maybe other things might change<br />IV. Schools/Reconstruction<br />a. Promises and pitfalls of reconstruction<br />b. What is going wrong with the reconstruction of the schools in Afghanistan?<br /> i. The people that would teach can make more money doing other jobs – so there are not enough teachers – especially at the primary level.<br /> ii. The NGOs don’t stay long enough – the emphasis is on producing the numbers for the reports and not the goal of education- this is the commercialization of education and commercialization of nation-building<br />c. Anything positive?<br /> i. Something is better than nothing<br /> ii. Some groups are able to empower certain individuals or regions<br />1. Help improve language skills to become employed<br />2. Bring some clothes to some people<br />3. Help some widows who couldn’t go out to get food find food<br />V. Policy Recommendations<br />a. Troop Increase<br />b. Reconstruction<br /> i. In the 1960s the women had the rights to go to school, to university, to wear what they want…..why did this happen? Because the political elite was interacting with the rest of the world…..the rest of the world influenced the political elite.<br />1. Can the US use its foreign aid to establish influence?<br />2. Yes – exchange programs to expose people to different norms<br />3. Make the elite attracted to trends of other countries so those trends appear in the government (like women’s rights)<br /> ii. In order for the repressive culture to end means to find a way to cut down on fundamentalism<br /> iii. Afghanistan will also have to develop its economy and infrastructure – get rid of the poppy trade – in order to develop their economy and gain traction away from fundamentalism<br /> iv. Must be continuity in foreign aid so that there can be long-term support for new values and cultures in the families/culture that would support the new values.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-51468086777230035332009-12-08T18:04:00.000-08:002009-12-08T18:04:00.267-08:00Globalization: Production and TradeProduction, Trade and Globalization<br />Questions to answer:<br />How has corporate power changed throughout the nineteenth and twentieth centuries?<br />What are the key historical junctures in the evolution of MNCs?<br />What are the domestic, decisional, distributional, and structural impacts of the globalization of business?<br />Is corporate power eviscerating state power?<br />Lowering wages and exporting jobs?<br />Exporting human rights?<br />What are the key historical junctures in the evolution of the global trading system?<br />How have states become enmeshed in the global trading system?<br />According to Irwin, what are the arguments in favor of free trade? For protectionism?<br />Are global trade relations eviscerating state sovereignty?<br />What is fair trade?<br />Does Hamilton make a fair case?<br />How have fair trade strategies been implemented?<br />Is it a viable strategy for LDC development or is it radical chic?<br /> It is liberal chic because it doesn’t do anything. There is no enforcement. And there is disruption at the local level if the fair trade fails because the fair trade brings in more money, and then fails. Also, it can make a place susceptible to takeover because it seems more prosperous for the neighbors to take because of the influx of fair trade market. The number of fair trade is also so small and doesn’t affect anything to do with the government and state-owned industries.<br /><br />I. PRODUCTION<br />a. Evolution<br /> i. 4 factors Held will use throughout to determine if globalization is happening:<br />1. Extensity<br />2. Intensity<br />3. Velocity<br />4. Impacts<br /> ii. With production, how does extensity change from the first wave of globalization to post 1944 (or 1944-89 and 1989 and after):<br />1. Increased in extensity in post-WWII era<br />a. FDI is moving to E.Asian LDC’s because of surplus labor (late 60’s – mid 70’s).<br />b. 1944-60: US largest FDI exporter, exporting to W.Europre/Canada<br /> i. FDR had the Marshall Plan<br /> ii. FDR wanted FDI to be invested “Greenfield” – physical plant machinery that cannot be easily moved<br /> iii. FDR did not want “Portfolio” investment – which was financial investment, stocks and bonds, not investing in manufacturing.<br />1. When Keynes is making his case for regulation of FDI, he wants restrictions on portfolio investment and limits on it, but wants almost unlimited ability to invest in Greenfield investments. Keynes wants people to invest in actual production<br /> iv. After 1989 mergers and acquisitions are going to be huge in FDI.<br /> v. After 1989 – FDI moves around the world, not just Europe.<br />c. The contemporary period differs because it is more extensive, wider spread, than past FDI periods.<br />2. Increased intensity in the post-war period as well. Look at GDP and the growth<br />3. Emergance of MNC<br />a. Skeptic: MNCs are driven by national agendas and are driven by national agendas and rules – they still serve the interests of their country and their country can put restrictions on them<br /> i. Countries can control MNC by<br />1. Tax policy<br />2. Regulations<br />3. Licensing<br />a. So a skeptic would say that the MNCs are simply serving their own interests – same as they were in the earlier time periods.<br />b. Transformationalist: The MNCs are forming trade and production networks and can evade state control. A new global economy.<br /> i. The networks make more and more transactions outside of the market (Held says)<br />1. They want monopolies and oligopolies<br />2. Vertical integration<br />3. Horizontal integration<br />4. Intra-firm pricing/Transfer pricing<br />a. 2 companies are owned by the same corporation so you don’t have the market interfering.<br />b. Market forces don’t determine price, the corporations do.<br />c. Why do MNCs like this?<br /> i. Get away from taxes<br /> ii. Funnel resources to places based on tax rates rather than where production is taking place<br />5. Intra-industry collaboration<br />a. A few firms in a particular industry will collaborate and agree.<br /> ii. Not that the state has lost complete control; but the state cannot control the activity as much as they want to.<br />c. Hyperglobalist: The nation state doesn’t have any power anymore, MNCs go wherever labor is cheapest and do what they want – MNCs run the show. Corporations are stronger than the states themselves.<br /><br /> iii. Aspect of production that is essential for the 21st century which wasn’t important before:<br />1. SUBCONTRACTING<br />a. Distributes power in the international political economy<br /> i. Allows SME (small-medium enterprises) to have more power because they can subcontract, or be subcontractors<br />1. Nokia<br />2. United Colors of Beneton<br />3. Louis Viutton<br />b. Distributes risk<br />c. Makes this period in globalization unique compared to all prior periods.<br />b. Impacts (Held Chapters)<br /> i. Decisional<br />1. Skeptics: No difference states still retain control<br />2. Transformationalist: States still have some control, but some of their control has been taken away<br />3. Hyperglobalist: States have no control<br />4. How does this affect state policy?<br />a. Demand management no longer works b/c of changes in production<br /> i. Makes it harder for sates to follow a Keynesian economy<br /> ii. Cannot support the national champions (France) as well because their influence has been reduced<br />1. Strategic trade policy<br />b. Unemployment policies have become harder to manage<br />c. Cost-benefit analysis are harder b/c the cross boarders<br /> ii. Distributional<br />1. Skeptics:<br />2. Transformationalist:<br />3. Hyperglobalist:<br />4. Labor looses as production shifts to lower paying countries<br />a. Sweden is the only place where labor can still win<br />5. Production shifts to having different levels of production/different parts of the production of the whole – located in different countries<br />6. Increased demand for skilled workers<br />7. Unskilled labor has been hurt the most because that type of labor can move to a different place where labor is cheaper.<br /> iii. Institutional (International Political Economy)<br />1. Skeptics:<br />2. Transformationalist:<br />3. Hyperglobalist:<br />4. More competition will be taken place<br />a. Particularly within the sub-contractor area<br /> iv. Structural<br />1. Skeptics:<br />2. Transformationalist:<br />3. Hyperglobalist:<br />4. State v. market<br />a. Held sees a shift to the market and corporate power<br />5. Performance of MNCs have become decoupled from national economic performance<br />a. This is another piece of evidence Held could use to show that the skeptics underestimate this trend of globalization<br />c. Other<br /> i. Frobel “New Int’l Division of Labor”<br />1. One of the first to document “deindustrialization”<br />a. Deindustrialization: moving industrial jobs from the industrial world to the developing nations<br />b. Uses German textile industry as a statistical and empirical example<br />2. During this period (1970s) you have:<br />a. OPEC<br />b. Rising inflation<br />c. Rising unemployment<br />d. Low growth levels<br />e. Wages fall<br />f. Collapse of Keynesian economics<br /> i. Clear by 1977 that they couldn’t resurrect Keynesian economics<br />g. FDI is going to LDCs<br />3. Shift of productive capacity from the developed world to the developing world<br /> ii. Arrighi “Industrial Convergence”<br />1. They are responding to claim that the hierarchy has changed but there is still a hierarchy (Transformationalist perspective)<br />2. There has not been a convergence and there is still significant stratification and the stratification is still clear cut – North/South<br />3. They call into question whether development/industrialization is really good for LDCs<br />a. b/c it can overlook important details<br />b. Questioning development paradigms<br />4. Deindustrialization argument is a specific political choice made by developing countries – specifically the US<br />a. They needed to find another area they could control b/c they lost hegemonic power in the industrialization area<br />b. This has the affect of undermining development<br />c. And it was intentional in order for the US to regain hegemonic power in an area<br />d. Create increased competition for finance capital<br />5. Not explicitly clear about the competition among development paradigms<br />a. Chile/Argentina/Brazil/Uruguay/Mexico: all of these made significant progress in 1960s with rises in living standards, public education, GDP doubled – this suggest that they might have come up with a persuasive form of developmentatlism or neo-Keynesianism.<br /> i. So the Nixon administration and others tried to dismantle the paradigm and stop this by redirecting flow of capital back into the US<br />6. When they draw the distinction between market capital and development capital – the US and others have written the rules so that the developing countries can never become developed countries (updating List and Kicking Away the Ladder)<br />7. Comment: application of applied theory to the issue - they use Schumpeter (creative destruction) to apply capitalism to the analysis they do.<br />a. Creative Destruction: You have to destroy the part of the economy that is hindering creativity in order to become creative and innovative<br /> iii. Hirst/Thompson “Globalization, a Necessary Myth?”<br />1. Best known SKEPTICS<br />2. Why do they think production and its consequences are fundamentally unchanged from the golden era of globalization:<br />a. Investment is still in the FDI<br />b. The networks are still regional, not global<br /> i. Reactors are fewer and thy will be more restricted in their geographical scope<br />c. They say that a real globalization market has never happened<br /> i. Held says that if you can see that foreign competitors are competing with local producers/national producers within a certain industry – you see globalization<br />d. MNCs don’t exist<br /> i. Look at where HQ and R&amp;D are taking place<br />1. If a company is truly transnational, it wouldn’t matter where these things take place<br />2. However, since there are no MNC’s – this does matter, and HQ/R&amp;D take place in their home nations.<br /> iv. Dicken “A New Geo-economy”<br />1. Uses production chains to show there is a movement towards globalization<br />2. Shows the tension between state regulation (state hasn’t been eviscerated) but MNCs are growing in their power<br />a. This puts him in a Transformationalist perspective<br /> v. Spar “Spotlight and Bottom Line.”<br />1. Is she too optimistic about how companies can control human rights?<br />2. Is she giving too much credit to MNCs watching human rights?<br />a. Puts a lot of emphasis on the public spotlight<br />b. Wanting the public glare to take care of being a conscience for the MNCs<br />c. But the problem is that this is more interest groups related than MNC related<br />3. Codes of conduct/Glare of spotlight<br />4. No regulatory agency for the MNCs to answer to for the human rights violations<br />a. She overlooks that the “fair-trade” movement might have gone as far as it can<br />5. She’s suggesting that under certain conditions the interests of the MNC will overlap with the human rights interest to create movement towards better human rights.<br />6. Is she a Transformationalist?<br />a. She has Transformationalist tendencies<br />b. She’s identifying the origins of the regulatory regime that would have to exist for MNCs to care about human rights.<br />II. TRADE<br />a. Evolution<br /> i. Accd to Held – why is this period different from earlier periods?<br />1. Technology has changed, so barriers to trade have changed<br />a. What are the institutions most responsible for reducing barriers to trade?<br /> i. GATT: post-WWII/1947 – a treaty not an organization<br />1. Establishes the principles for a free trade system<br />2. By 1979 with the Tokyo agreement you reach the lowest tariffs on manufactured products<br />3. What were the limitations of GAAT?<br />a. Limited enforcement mechanisms<br />b. Issues GAAT did not address:<br /> i. Agriculture<br /> ii. What did GAAT come up with in the early 1960’s to try and appease developing countries with agriculture?<br /> iii. GSP – generalized system of preferences: would give preferred status to some of their exports to industrial countries (India and textiles was the first one)<br /> ii. WTO: 1995<br />1. Stronger enforcement mechanism<br />2. Still doesn’t address agriculture<br />3. <br /> iii. <br />b. When we reach the contemporary globalization period; tariffs are at their lowers point every<br /> ii. Extensively: More countries than ever are involved in international trade<br /> iii. Intensity: No longer just raw materials and final luxury products being traded international – the types and numbers of goods being traded are going to increase/services are added to trade<br />1. How does this affect US in terms of manufacturing?<br />a. Reducing for low capital gods, but they are being traded more<br />2. Number of goods being manufactured in US have declined, but those industries still producing are producing more and being competitive<br />3. Country’s GDP related to international trade is increasing<br />a. In US – 12% relating to exports<br />b. In Germany – almost double what US is<br />b. Impacts<br /> i. Decisional<br />1. Cannot be protectionist in policy (because of WTO rules)<br />2. Attitudes about free trade have shifted – ideological shift<br />3. Everything becomes more sector specific and less class based on who is benefiting and losing from trade – becomes more difficult to build and sustain coalitions<br />a. Example: Labor unions in Oakland (Longhsoremen/docks)<br /> i. They should be opposed to globalization because it reduces demand for their labor, but it has increased demand for their services at the Port, so they are okay with it.<br /> ii. Distributional<br />1. Who benefits: Skilled workers<br />2. Who loses: Unskilled workers<br />a. The “retraining” argument cannot hold when white collar jobs get traded out to another country (engineering, computers etc)<br />b. But not those whose services (plumbers et al) whose services have to be local<br /> iii. Institutional<br />1. How this has affected changes in the international economy – how they have affected different actors<br />a. Welfare state: the welfare state/demand management policies become more difficult with an open trading system<br /> i. But Netherlands, Sweden, Germany have open trading and welfare states<br /> iv. Structural<br />1. Biggest impact on states: demand management policies<br />a. National autonomy is declining over economic policies<br />b. What needs to be developed to make states respond to trade issues: human capital, retraining<br /> i. Options of states have been reduced to this level<br /> ii. TAA (1962) Trade Adjustment Assistance Act (Kennedy and Congress) – if one could prove that the job had been lost to international competition, then you could get extended benefits – and retraining.<br />c. Other<br /> i. Rodrick “Advice to …”<br />1. What advice would he give to a developing country in terms of trade policy?<br /> i. <br />b. Comes out of a centrist tradition; not associated with the left<br />c. Critical of some of the major aspects of neoliberalism<br />d. <br /> ii. Leclair ‘Fair Trade”<br />1. Two things that can help developing countries<br />a. GSP: from the GAAT – helps developing countries who can export certain goods<br />b. STABEX: European stabilization fund<br /> i. Developed by the European Community (Africa and the Carribean)<br /> ii. Whenever the primary product the country exported, whenever the price of the product fell below a certain level, the country could take out $$ from the stabilization fund.<br /> iii. By time get to 1980’s/1990’s – will rule that the GSP violates international trade standards.<br /> iv. The EU decides to discontinue STABEX<br />c. The policies of the EU to the developing world has been equally as stern/exploitative as the US<br />2. How can fair trade address the dismantling of the 2 institutions<br />a. Fair trade<br /> i. Tries to get a fair price for the producers of products<br />1. Not individually owned farms/corporation owned farms<br />2. But use cooperative; the people who live on the cooperative must have a say in how the profits are going to be used.<br />a. Tries to get cooperatives to make their own decisions for education and medical institutions – with the profits from the fair-trade agreements<br /> ii. Gets a lot of the product from the producers and sells at a higher market in the developing world – brings that money back to the developing country and keep it in the country<br /> iii. Gets a guaranteed price above the standard market price for that product (based on the C-market in NY)Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-26808367885318885422009-12-06T18:02:00.000-08:002009-12-06T18:02:00.467-08:00Political theory: Notes on the meaning of GuizotLecture 18 (p. 359) – wants to know about the division of legislative power.<br />- The philosophical school and the “other” school of thought<br />- Guizot has a “these people are stupid,” attitude towards what others are doing in history and philosophical<br />o What is it the philosophical school lacks that history has?<br />§ History has facts.<br />§ Guizot likes facts because what happened always happened, and the knowledge doesn’t change about the facts.<br />§ But facts by themselves are meaningless because you need a frame of reference to understand the facts.<br />§ Philisophical school is correct in using the Right as its end but also as its starting point<br />o <br />- What is Guizot’s problem with Rousseau?<br />o Rousseau is almost right<br />o Rousseau says that everyone has certain rights that cannot be restricted and that cannot be taken away<br />o Rousseau then says that the whole point of having certain rights that cannot be restricted means that people always give their consent to being governed.<br />o Guizot says - this is almost right<br />o He says that some people believe in representation, and since you voted for people who represent you, you have to accept everything they do –<br />§ Is this a good idea? No. Why? Just because you delegated things to someone, doesn’t mean that you have to like what they are doing – you need to hold them accountable.<br />§ Guizot says there are two things about representation: either the person who is elected is the slave to the electorate; or the electorate is the slave to the representative.<br />§ These won’t work – and so there is a problem with this because it takes away the will of someone.<br />§ Chapter 6, 7, and 8 of Part 1 – wants to divide things up<br />· Says that classifying things according to their external forms (government by the many, the few or the one) is error because sovereignty always belongs to some of the people, but not all of the people.<br />· P. 52 – ‘The classification which I am about to present……do not belong to our imperfect nature.” What is good for society isn’t always the thing that is done, because sometimes you may not do it because you don’t want to, or may not know what it is. So how do you make this thing into a principle of government? So that people put the needs of the society above the needs of the one?<br />o UNITY<br />o Pg. 53 – “Representative Government is….”<br />o Guizot says that having one republic is best – so England is the best example.<br />o There was no getting together in the woods to discern a social contract; instead something else happens<br />- Guizot’s history of England doesn’t start with the history of England – it starts with William the Conquerer who founded England and had the Tories (authority and tradition) and the Wicks (liberty); Tory – all power was vested in the King by God, and so even though the king has been letting things go, we should give him power.<br />- William doesn’t get all the power when he conquers - You had 2 people who were barbarians, but who had institutions that lasted for 100’s of years (the Normans)<br />- There is a division among aristocrats – some of them become rich and powerful and surround the king; some of them stay on their local turf because they are weaker.<br />- History is not the history of everyone, it is the history of actors (people who influence society on the political stage) – and most people are not actors because they don’t have freedom (politically or economically) and they are not doing anything. Free people require economic interests – if you are weak, you cannot resist.<br />- The barons – the rich aristocrats – want the kings to sign charters because the kings are abusing the barons. And the barons get the kings to sign the charters because they steal their sons, etc…..then when the barons leave the king ignores the charters…then the barons come back and get him to sign another charter….then the king ignores it…<br />- This history shows (for Guizot) that England went from a balanced power to an absolute king, then to trying to fix the problem…………so you can see from above, that there needs to be power to force the king to enforce the charters instead of doing things in an ad hoc fashion.<br />- People who are really poor have no power. Cities collapsed (like London) after the invasion and they became poorer so they had no power to stand up to the king or anyone else.<br />- But then the cities started growing more powerful – and the barons and the kings wanted them as their ally.<br />- If you have too powerful of an ally, you might become the subservient person rather than the dominant party in the alliance.<br />- So the king invited the barons, those who no longer attended court, and those representatives of the cities to advise him<br />- This is the history of the three part government in England<br />- The government of England has to be established based on the facts of the situation, and cannot be simply established in the forrest.<br />- Guizot says that everyone is not free to use their will (Children, mentally insane, mentally retarded) – parents don’t have free reign over their children, but there are responsibilities that arise out of things other than love.<br />- But in the history of England, it shows that there needs to be insitutitons to support and enforce the charters and those institutions need to be filled with people who have the inclination to be there and so that people cannot simply take power over others because they want to or rule based on their will.<br />- The determination is never final – you will not get representative government in a place where people do not have to prove themselves again in the future.<br />o Guizot is interested in publicity, elections because it requires everyone in power to go out and prove they are worthy of being in power again<br />o It is a constant deliberation and re-deliberation about whether the people in power are right and whether the laws are right<br />o It is never a final determination<br />o The search for the true Right is one that is continually going on<br />o It is the only way you can do it when people don’t know the law and have the willingness to follow the law all the time – because people are ignorant and not angels.<br />- So what does Britain do that almost makes them have a deliberative democracy?<br />o They have divided powers (Ch. 18 Part 2)<br />§ The 3 parts Britain has are a result of history – the great inequality of economics and power – House of Lords, House of Commons and the Kings<br />o Power doesn’t have to be divided that way, but it does have to be divided enough to have a 3-sided conflict to keep things in balance<br />o The other thing you need are decent rules of election<br />§ We are going to draw these from Britain’s fact, but they will show philosophical rules of Right<br />§ Britain ends up with election almost randomly: See his list of facts<br />§ Object of election is to obtain the most capable and best men in the country<br />· There is no real publicity when something is too big<br />· The community has to be small enough that you know the truth of who you are voting for and what is going on<br />o England discovers this by accident – counties and cities developed so small “the force of events”<br />o England lucked out<br /> <br />o So what does history offer, he says it become practical? What does that mean?<br />o The study of history never grows old – the old facts have new things discovered in them that were never revealed until now<br />o He says that history sn’t jus a random study of facts <br />§ He studies representative government because he wants to do something with it<br />§ And because all of Europe is developing representative government and so this is something history must be striving towards something/ that history is progressing.<br />§ Surprising idea – Europe has been tring to establish an idea of representation that works. England’s history is the history of moving from the tribal to the incredible inequality to move towards limits on absolute power of the king (charters/meetings etc),<br />· All of Europe is trying to do this, and everywhere is stinking except for England.<br />· So there must be something about England that is exceptionalNatashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-58730888272771669372009-12-04T18:01:00.000-08:002009-12-04T18:01:00.147-08:00Political theory and Guizot; RepresentationGuizot is writing at a time when all of Europe is trying to develop representative government. Some places are failing, and some are failing miserably. During this time, Guizot sees that England almost has a real representative government. He wonders what it is about England that is enabling it to succeed in a representative government when the other countries in Europe are failing. In order to complete this study, Guizot looks at two things: representation and why the history of a political government is important to understand it.<br />Guizot wants to discover the meaning of the word “representation” as applied to the government of a community. He rejects the notion that “representation” can have a definition that is separate from the facts which surround the desire to define it. In this case, Guizot wants to define representation based in the surroundings of a representative system of government – The creation of Parliament in the English system.<br />Guizot says that the definition of representation, actually a doctrine of representation, is philosophical. He says that the doctrine starts from the principle that “Truth, reason, and justice – in one word, the divine law – alone possess rightful power (p295).” Guizot goes on to state that the way a society perceives this divine law, based on all the history it has gone through, creates “just ideas” within a society. These just ideas accompany loyal wills. However, just ideas and loyal wills are dispersed throughout society unequally. The distribution is based on the attributes of the individual. Each individual will have part of the just idea and loyal will within them.<br />Therefore, the concern of the society should be to collect all the fragments of just ideas and loyal wills and bring them into a whole and constitute a government. For Guizot, this is representation. It is the means to arrive at a government which will be legitimate. In order for this government to be legitimate it must subject itself to the reason of the individuals (meaning the decision of the individuals who have part of the just ideas and loyal will within them), over and over again. The process is never complete, but continues for as long as the government continues to be legitimate.<br />Guizot believes that representation cannot be understood in a country without also understanding the history of a country. Remember that Guizot believes in representation as a doctrine, a process – not simply some ideal. Earlier in his book Guizot stated that all fact, all history, is important to understand what comes next and that nothing happens in a vacuum. This means that, for Guizot, the formation of a representative government in a country cannot be understood without understanding the facts and the history in the country. Unlike Rousseau and others, Guizot does not place the start of a government, even a representative government, in the middle of a forest without any preconceived ideas or needs. Instead, Guizot starts from the notion that each man is not completely open to their own will, but instead recognizes that there are several laws – he calls them divine laws – that must be obeyed regardless. Guizot classifies these laws a truth, justice and morality.<br />For Guizot, representation is examined, for its definition, when it came into being – at the establishment of the English Parliament. For Guizot, the circumstances surrounding the establishment of the English Parliament – the abuse of charters by the king – helps shape the form of representation that England ends up with, and can offer clues as to how others can get it as close to “correct” as England has done.<br />England has a history of having small towns/localities. Therefore, when the House of Commons, one of the three parts of the English representative government and the lower house in the English Parliament, came into being, it brought with it the “small town” representatives. There are advantages to having a small area which a person must represent. Guizot states that the representatives of the people must consistently justify themselves and that election, publicity and responsibility (the three institutions which allow individuals to reason whether the people they have chosen as representatives should still remain their representatives) are easier to achieve in a smaller population and geographical area. The small towns of England have this in their advantage. In small towns, so the stereotype goes, people know each other, talk to each other and can trust/verify the activities of other members of the town. If a small town’s representative was to do something against what the small town wanted, publicity would easily bring it to the attention of the town members. Bringing things to the attention of the town members increases in difficulty as the town grows. California’s system of having only 40 state senators for the whole population is opposite of Guizot’s ideal situation. The larger the area, the harder it is to have open elections, responsibility, and the harder it is to publicize information about the representative and what they are doing. For Guizot, size matters.<br />England maintained this history of having small groups of people choose their own representatives from the first time they were asked to send representatives to the King. The King asked for representatives from the cities, the small closely-knit communities, to advise him along with the barons when it seemed as if the cities might gain too much power. By bringing in local representatives to advise him, along with the traditional nobility advisors, the King founded the basis for the three-part division of power in England: The monarch, the House of Lords and the House of Commons.<br />This three-part division of power arose in England because of the great inequalities of economics and power among the nobility and the commoners, and even among the various factions of nobility. For Guizot it is this three-sided balance of power, and how it came about, that makes England the example for representative government. Although Guizot does acknowledge that representative government doesn’t have to be structured exactly like England, but that there should be three sides to the power struggle so that one side cannot overwhelm the others. Whether a representative government ends up like England or with another system will largely, according to Guizot, be based in the historical influence of the actual country.<br />Guizot uses the history of England to say that representation is a continuing process. For Guizot, this process, representation, isn’t simply an ideal; it is a constantly occurring justification of the legitimacy of the government and is aimed at bringing together everyone in the interests of just ideals. England happened upon many of these things by chance, simply because its history influenced events; like the King inviting representatives from the city (precursor to the House of Commons) to advise him. Facts in context make history, and since England is the closest thing to a true representative government Guizot can observe, Guizot uses England’s facts, its history, to explain the doctrine of representation and the relationship of representation to history and representative government.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-55519563960140838942009-12-02T18:00:00.000-08:002009-12-02T18:00:00.754-08:00Notes on Bentham· He doesn’t like social contract theory<br />o There never was a social contract/false premise<br />o Social contract: You should obey because you consented<br />· Instead, replace it with utilitarianism/happiness principle<br />o Government should be for the greatest happiness of the greatest number of people<br />o You should obey because government is working towards something<br />o The advantage of this principle is not that utilitarian principle every happened, but rather that it is the right reason for government to be doing –<br />§ It only makes sense that people would be part of government only if they got something from it, not if it was harming them (kind-of; it makes sense in the same way that everyone was in the woods and consented to government).<br />· We’ve been told by three authors in a row that Britain is the model for government – but Bentham disagrees –<br />o <br />· Judicial review (p.99)<br />o The mode of opposition is a legal one – judicial review<br />o Give the power to annul acts to the judges, and you give part of the supreme power to a set of men who haven’t been chosen –<br />o Bentham doesn’t like judicial review – and he doesn’t like common law<br />· Why does Bentham say that we obey laws?<br />o Habit<br />§ We aren’t always perfectly obedient to the sovereign<br />§ But the whole existence of being obedient to the government is out of habit<br />§ Governments go in and out of habit – sometimes more people are in the habit of obeying habit, and sometimes less people are in the habit of obeying the government<br />§ Why do people obey governments that are bad for them?<br />· Because they have been doing it that way – habit<br />· It is the only way they have known existence<br />§ Habit is the main reason for leadership<br />o Not fear of punishment, because if it was punishment, then that implies that we have a duty<br />· Blackstone – social contract is the reason that people obey<br />o Bentham says that he’s unsure about what Blackstone really is<br />§ Doesn’t think you should be able to ask “what ought to be”<br />§ Isn’t concerned about “what ought to be” unless the law is “what ought to be.”<br />§ You should just follow the law<br />§ He’s an expositer of the laws who tells you what the laws are, and that they are good<br />· Because you have an obligation to the law – because they are the laws<br />· Censorial – what ought to be<br />o This is the way Bentham thinks that law should be<br />o This is the philosophy of jurisprudence that Bentham thinks should be in place<br />· Why does Britain stink?<br />o Because its not utilitarian<br />o Because people’s habits are stuck following the social contract<br />§ Because habits come from what people read and hear – which is just the social contract theory which says obey obey obey<br />· Why doesn’t social contract theory satisfy Bentham?<br />o Because social contract theory says you can only revolt when you have a right to revolt<br />o Bentham thinks this would have to be sooooo bad, that it would never happen<br />o Utilitarianism will never happen<br />o He thinks that as the government treats you poorly, you have less obligation to the government.<br />o It doesn’t add anything to your obligations – It says you have to obey because it is right – but there are no other rules<br />· The words make it seem like there is a government<br />o But there is no clear cut distinction between when there is a government and when there is no government<br />o So why would you obey the laws? What happens if everyone disobeys the laws? Doesn’t everyone disobey the laws at some point?<br />· Bentham wants to claim that utilitarianism is better than common law<br />o P.96: It is the principle of utility that guides…<br />o P.104-105: The total big argument: I cannot see this as merely a dispute over words…<br />§ Difference that is argued in the utilitarian theory is “happy or less happy” - which is a factual argument rather than simply “yes/no” argument based on theory.<br />§ What are the two principles: The first type of argument is based on opinion; based on what is determining what is “right” –<br />· This is the reason he dislikes common law – because the judges are doing what they think is “right”<br />· Bentham says that people who make the decisions based on whether things are “right” or “wrong” – that relate to the divine law – are speaking on opinion and it is difficult to get a consensus<br />§ The second type of argument is that based on fact – while it may not settle all arguments, the argument about the effect, rather than on opinion, will lead to more consensus<br />· But in order to do this in utilitarian theory you have to define what happiness is: and it can be harder to quantify the happiness and make it factual so that the argument can move onto the effects of the factual happiness.<br />· Bentham wants to say that happiness is quantifiable<br />· Laws shouldn’t be made to do what is right; laws should be made to suit the happiness of the most people.<br />o Arguing for laws that are about the “eternal right” aren’t valuable and tend to be absolutist in their position<br />§ The absolutist position is a bad one because even if it makes sense now, it might abridge happiness in the future, and then you would be obligated to obey it.<br />· You want to use words that everyone can understand<br />o Avoid Latin because people don’t know what they heard<br />o Hates Blackstone because he doesn’t use common words but instead uses words that people don’t understand<br />· Utilitarian principle is based on pleasure and pain<br />o Does it cause more pleasure?<br />o Does it cause more pain?<br />· A free government has the same limitless power as a despotic gov’t (p.97)<br />o What is he arguing against?<br />§ The American government is a limited government; that’s not what Bentham is saying. For him, government is limitless and can do anything in it wants to make the people happy<br />§ But a free government doesn’t have less power<br />· It has a different distribution of power<br />o In a despotism – the power is in single hands<br />o In a free government – the power is distributed among many<br />§ There is a free press in a free government<br />· So that everyone can communicate their discontent<br />§ Government, even a free government, has to have limitless power…<br />· But if you structure it in certain ways, you can manage to keep the government free and more utilitarian (happiness oriented)<br />· Hume had an essay that asked whether the British government was more monarchical or democratic – and said that it was democratic and you needed something to pull it back to the king<br />· Bentham says that isn’t true – the House of Commons doesn’t represent the commons, it represents the King, the rich - but not the commons.<br />· You want a government that looks out for the common god – the utilitarian principle (happiness)<br />o The only alternative is one that says “my wants are more important, screw the happiness of others.”<br />o But that is what Britain doesn’t have – there are no other legit principles in the interest of the people except the utilitarian principle<br />o What you really want is a society where people are forced to follow the utilitarian principle<br />§ Bentham thinks the US solved this problem.<br />§ Bentham says that the US is better than Britain because everyone is elected and everyone is responsive to the people<br />· No one is simply placed in office based on their birth<br />· The power is separated<br /><br />· Notes from professor – Bentham says that there never were agreements in England, but the truth is that there were – the charters made by the King (who frequently ignored them) – hence what the revolutions were about.<br /><br />o Bentham really forgets that agreements not being kept can be a factual disagreement.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-10962028495853371602009-11-30T17:56:00.000-08:002009-11-30T17:56:00.424-08:00Notes from Held's book on globalization of financeHeld Ch. 4<br />Shifting Patterns of Global Finance<br />4.1: Indicators of Financial Globalization and Financial Enmeshment<br />· Openness of national financial markets: level of legal restrictions on international financial transactions<br />· Enmeshment: extent of national financial engagement in global financial activity<br />o Measured by: turnover of overseas assets on national markets, involvement of both foreign financial institutions in domestic financial markets and domestic financial institutions in overseas financial markets and national shares of various global financial flows<br />· Integration: precise economic sense of the extent to which the process of, and the returns to, assets are equalized between different national financial markets<br />· Best indicator of financial globalization as a historical process: extent to which there is a convergence between returns to, or process of, similar financial assets<br />· Extensity: measured by geographical reach<br />· Intensity: magnitude of global financial flows<br />· Velocity: related to changing infrastructure, like communications technology<br />· Impacts: it has always impacted but the kinds (decisional, institutional, distributional and structural) can vary among eras; mediated by national economic conditions<br />4.1.1: The structure of the argument<br />· Global finance embraces:<br />o Flows of credit<br />o Investment<br />o money<br />· Seeks to identify the key attributes of various eras<br />· Technical terms:<br />o International capital flows: cross-border flows of assets and loans differentiated into several types:<br />§ FDI: ownership of or investment in overseas enterprises in which the investor plays a direct managerial role<br />§ International bank lending: loans to foreign creditors in domestic or foreign currency<br />§ International bonds: credit instruments issued by or to overseas creditors which include a promise to pay a specified amount of money on a fixed date and to pay interest periodically at stated intervals – bonds are marketable securities denominated in standard units<br />§ Portfolio investment: investment in corporate shares or longterm bonds held simply for their return with the investor playing no managerial role<br />§ International equities: shares in companies issued to foreigners<br />§ New financial instruments: derivatives, options, swaps<br />§ Development assistance: official government-to-government aid flows<br />§ International monetary flows: buying and selling of foreign currency<br />o Gross capital flows: measure total capital flows out of an economy or alternatively flows inwards<br />o Net capital flows: measure gross outward flows minus gross inward flows – net flows indicate whether an economy is accumulating claims on the rest of the world or visa-versa.<br />4.2: Early patterns of global financial activity<br />· 12th century: Precious metals used by international traders<br />· 14th century: Organized international finance: Florentine merchant banks<br />· 16th century: Europe imported large quantities of precious metals used to finance purchases in Asia (Europe and Asia became intertwined<br />· 16th century: Antwerp developed as financial center b/c of liberal financial policies<br />o Growth of international finance fueled by 2 things:<br />§ Growing trade networks fueled demand for cross-border financial systems to prevent danger of transporting money across lands<br />§ Difficulties faced by states to finance wars created pressure and opportunity for organized finance<br />· Example: Bank of England created to finance England’s war with France<br />· 18th century: demand for international finance led to sophisticated markets<br />o Communications took about a week<br />o But intensity of trading makes it a cohesive whole<br />· Although extensive, the reach was limited to the reach of imperial systems<br />4.3: The classic Gold Standard period: 1870-1914<br />· Developments n communication and infrastructure means that international markets became enmeshed with national markets<br />· Skeptics: this period is the benchmark for financial globalization because it was during this time that the scale of net flows was the greatest and adherence to the Gold Standard meant that countries had to subsume their domestic economic policies to the international rules.<br />· Transformationalist: this is misleading and untrue<br />4.3.1: International capital: the extensity, intensity and stratification of financial flows<br />· Remember that Held is saying transformationalists believe the skeptic position is misleading<br />· Exact capital flows across countries is hard to measure, but the general sense is that it increased<br />· This period had capital flows changing from European-centric to having a distinctive interregional or intercontinental character<br />· Charts are in book to show capital flows and where they went/how much was invested<br />· A liberal financial market: little to no regulation on international transactions during this time; especially on global bond market (privately organized)<br />· There was an intercontinental reach but it was concentrated and stratified<br />· Infrastructure changes made it possible to have global markets more effectively: intercontinental telegraphs, encouraged the institutionalization and formalization of international monetary arrangements (classical Gold Standard)<br />4.3.2: International money: the operation of the classical Gold Standard<br />· Values of major currencies were fixed to gold<br />· Established formally in 1878 (Paris International Monetary Conference – 1867)<br />· Initially, participation confined to leading European economies, N.A. and Australia<br />· Membership required that countries both convert their currency to gold on demand and did not restrict international gold flows.<br />o Some say this was an open and automatically adjusting system<br />o Critics say – not so, but it was open<br />· P. 196: The operation of the Gold Standard – in theoryNatashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0tag:blogger.com,1999:blog-1614375184739688528.post-5084899625465841522009-11-28T17:22:00.000-08:002009-11-28T17:23:12.682-08:00Globalization and Finance: Held, Castells, and GilpinFinance is another aspect of the world that is examined when globalization is studied. Just like the Multi-national Corporation and union analyses, the analysis of finance will use Held’s measurement system. <br />The discussion of finance involves the comparison of financial flows over time. This is necessitated by the skeptic position which claims the world is less “globalized” now than in the golden era. In order to determine if the analysis of financial globalization supports the skeptic position, or supports one or more of the other positions, it is necessary to look at finance over time.<br />The skeptic position argues that the benchmark for a truly globalized financial system is the Gold Standard era, before World War I, and that the world today is not as globalized as the world then (Held 192). For the skeptics, the Gold Standard Era required that states subsume their domestic policies to the international rules of the Gold Standard system (Held 192). Today, according to the skeptics, the nation-state has not been undermined by the forces of globalization, that nation-states do not have to subordinate domestic economies and economic policies to the international system, and that although the role of the nation-state has declined, in some ways, in economics, it has increased in others (Gilpin 349).<br /> Extensity and intensity are the first two criteria examined when analyzing globalization. For the skeptics, the extensity and intensity were greatest in the late 1800s: the markets were truly supreme and the nation-state had little power over economic affairs (Gilpin 350). In order to be a member of the Gold Standard system, a country had to convert their currency into gold on demand and not restrict international gold flows (Held 195). For skeptics, this is the ideal of a globalized financial system; the nation-state being subject to the market. During the late 1800s the extensity allowed the international flow of finance to reach all over the globe; there was a global capital market, multinational banks, and a flow of money between countries, although the flow was highly uneven (Held 198). Additionally, the intensity, the net capital flows around the world, has not been reached at a similar level since that time (Held 198). Since, as skeptics argue, this is not the case today, then globalization is less than it was in the late 1800s (Gilpin 351).<br /> Transformationalists do not dispute that the extensity and intensity of globalization during the golden era were phenomenal, but instead state that the extensity and intensity still relied on domestic policy and a few countries, notably Britain, dominated the system (Held 198). It was centered in Europe, which made it regional rather than global in reach (Held 198). Compare that to today where almost all nation-states participate in the international financial markets either through international bonds, currency trading and setting interest rates (Held 222).<br /> The intensity of the current market, for transformationalist, is much larger today. There is lending between banks- both in national and foreign currency – international bonds, stock markets, derivatives, and international money markets (Held 209). With all of these types of international financial flows, they are more global in nature and less regional. Europe does not dominate the flow of capital (Held 207) and more money flows to developing countries than it ever did in the golden era (Held 211). The various ways that capital and investment can flow without regard for national borders is unprecedented in the current time (Held 223).<br /> Velocity is one area that is undisputed between the various viewpoints. Skeptics, transformationalists, and hyperglobalists all agree that velocity is faster today than it has ever been before (Held 223). This is because of the infrastructure and technological developments in the world. There was no internet to connect the world 24 hours a day, 7 days a week in the late 1800s. There is the Internet today. This allows for instantaneous communication around the globe in the financial markets. When this is compared to the trans-Atlantic cable that allowed for international telegraphs, there is simply no comparison. The velocity is much faster today than in any other period (Gilpin 352).<br />However, the presence of technology and communication between people is not the same as having a globalized financial system.<br />The area where there is the most difference between skeptics, hyperglobalists and transformationalists is on the impacts of globalization. For a skeptic, globalization would mean that nation-states must subordinate their national economic policies to the international finance market (Held 6). However, the skeptic maintains that in the world today, nation-states are just as important as the international financial markets and that the international financial markets only operate with the consent of the state, which means there is not globalization (Held 6, Gilpin 354). Skeptics also maintain that the ideal state of globalization, the golden era where the nation-state was required to subsume national economic policy to the requirements of the Gold Standard, is simply not met today (Gilpin 349).<br />A transformationalist would argue that the international market blurs the line between the nation-state and the international world, and that the international financial market forces nation-states to change the way they pursue their goals (Held 7). A hyperglobalist would argue that the international financial markets are eliminating the need for nation-states; that the nation-state is becoming obsolete in the face of international financial markets (Held 12).<br /> How does the international financial market impact domestic policy and the decisions of nation-states?<br /> Nation-states have to manage macroeconomic policy which consists of fiscal policy and monetary policy (Gilpin 354, Held 228). The nation-state has access to the international fiscal markets for borrowing and financing its debt (Held 229). The nation-state must also consider issues of interest rates and capital mobility when managing macroeconomic policy (Held 229). However, simply because a nation-state must consider these does not mean the nation-state is in decline, or that that nation-state is forced by the market to change their policies (Gilpin 355). Instead, the nation-state must make trade-offs, as it cannot have fixed interest rates, autonomy in macroeconomic policy, and international capital mobility (Gilpin 354). <br /> For skeptics, if the world was truly globalized, then the state would not be able to affect its economic policy and would have to surrender to the global system (Held 192). However, the Federal Reserve still maintains a large control over the United States economic policy, the European Economic Monetary Union maintains control over its interest rates, and Chins has imposed controls on capital movement (Gilpin 355). If this were truly a globalized financial system, these domestic controls would not be possible because the domestic policy would have to be subordinate to the international policy and the nation-state would not be able to make the choices they do – like the EEMU, China and the Fed. Rather, the presence of the international financial system has made macroeconomic policy more complex (Gilpin 357), but has not negated the importance of the nation-state.<br /> Castells, a hyperglobalist, admits that most of a nation-states’ economy is based on the domestic sector, but claims that the globalized core – the financial markets – creates a global economy that influences and diminishes the nation-state (311). In the financial markets, money can move instantaneously and at any time of day or night because of the Internet (Castells 312). However, this is an argument about velocity, not about impacts. The impact of the international financial markets cannot be seen merely in the presence of technology – that is infrastructure- but must be seen in how the nation-state is making, or not making, its own decisions. The lack of information from hyperglobalists about the impacts of the transactions, rather than merely showing that there is more velocity in the transactions, supports the skeptic position that globalization is being exaggerated.<br /> Transformationalists also under-emphasize the impacts of financial globalization on the decisions of nation-states. In order for the transformationalist perspective to be the one with the most support, they would have to show that the globalization of international financial markets is changing the way that states think about sovereignty and the way states make decisions. <br /> Although the presence of international markets has changed the way that nation-states do business, it is still the nation-states doing the business (Held 229). It is the German Bundesbank that determines the inflation rate, monetary supply and economic policy of Germany and although international markets have made this more complex, they have not taken that authority away from the German nation-state (Held 229). Financial liberalization has given nation-states more options regarding their finances, like borrowing from investors who might impose terms and conditions on the borrowing, but it is still the nation-state making the choices (Held 229). What this might signal is a shifting in the way a state thinks of itself. Instead of thinking that everything the nation-state does must be paid for by the nation-state, the nation-state might be willing to enter the international bond market and accept a reduction of its ability to make decisions in the future (Held 230). However, it is still the nation-state that must make the initial choice to reduce their abilities, and not all nation-states make this choice. This means that the nation-state is still the primary actor.<br /> The strongest argument against the skeptic position is the way that risk is distributed throughout the system (Held 233). If the markets are truly globalized, then the risk of the market will be globalized as well. What happens when one market crashes in a globalized system? All markets crash. This is what happened in 1982, and in 2007-08 (Held 233, New York Times). The risk of the system was spread among the world and was not confined to one area, or one nation-state (Held 234).<br /> The hyperglobalist and transformationalist positions simply do not have enough evidence to support them. While these positions claim that the state is declining in importance, the state, even in their proffered evidence, does not seem to decline in importance. Markets, such as stock markets and futures markets, are nationally based. Nation-states make decisions to seek out loans with certain terms and conditions. Nation-states still set domestic economic policy. While the nation-state may take into account certain international financial issues, it is unclear that the nation-state is declining in importance or in their decision-making power. This leaves the skeptic position, that globalization is being exaggerated, as the strongest position.Natashahttp://www.blogger.com/profile/18091903631189424450noreply@blogger.com0